American Capital Access Holdings Limited Responds to Fitch Ratings.Business Editors NEW YORK--(BUSINESS WIRE)--May 11, 2004 American Capital Access Holdings Limited, in response to the action taken by Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. , Inc. in downgrading downgrading A reduction in the quality rating of a security issue, generally a bond. A downgrading may occur for various reasons including a period of losses, or increased debt service required by restructuring a firm's capital to include more debt and less the insurer financial strength rating of its subsidiary ACA ACA - Application Control Architecture Financial Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Corp. to "BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. " from "A" has made the following statement: "Fitch's ratings action, only six days after it placed the Company on Credit Watch Negative and absent any further inquiry or negative developments impacting the Company is unwarranted. We believe that Fitch's ratings philosophy, as it has evolved, is fundamentally inconsistent with the business platform we have successfully developed. We have thus formally requested that Fitch withdraw its insurer financial strength rating of ACA Financial Guaranty Corp. The Company remains committed to raising the capital necessary to support its business plan and to satisfy the capital adequacy requirements of Standard & Poor's Ratings Group. As the Company has previously announced publicly, we have filed a Registration Statement on Form S-1 with the Securities and Exchange Commission with respect to the sale of its common shares. Since we are still in registration, what can be said about the operations of the Company is legally limited. Although we are disappointed in Fitch's action, we are firmly committed to our customers, our employees and to our investors and to the continuation of our business platform." ACA is an insurance holding company that provides financial insurance and related products. ACA commenced operations in 1997. The Company utilizes credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing and structured finance technology to manage risk. For questions or comments, please contact Cathy Bailey, Director of Marketing at 212-375-2003. |
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