S&P Announces: Triad Guaranty Insurance Corp. and Parent Ratings Affirmed; Outlook Stable.Business Editors
NEW YORK--(BUSINESS WIRE)--June 10, 2004
On June June: see month. 10, 2004, Standard & Poor's Ratings Services Ratings Service
A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. affirmed af·firm
v. af·firmed, af·firm·ing, af·firms
1. To declare positively or firmly; maintain to be true.
2. To support or uphold the validity of; confirm.
v.intr. its 'AA' counterparty Counterparty
The other participant, including intermediaries, in a swap or contract. credit and financial strength ratings on Triad 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. Insurance Corp. (Triad) and its 'A' counterparty credit rating on Triad Guaranty Inc. (Guaranty), Triad's parent. The outlook on both companies is stable.
The ratings are based on Triad's very strong capital adequacy and operating performance, growing market position, focused risk strategy, and strong fundamentals in the U.S. mortgage insurance industry.
Guaranty, a holding company, is a public company with about a third of its common stock held by the Collateral Investment Group, which operates an insurance holding company and a mortgage banking operation. Triad, the major subsidiary of Guaranty, is a U.S. domestic residential mortgage insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual.
An insurer is frequently an insurance company and is also known as an underwriter. .
Triad's loss development is expected to continue outperforming the industry's because of its emphasis on high credit quality. However, its loss ratio rose moderately in 2003 because of economic weakness and an upward trend in default rates. The loss ratio might increase moderately in 2004, but it is expected to remain superior to the industry average.
Triad's expense ratio will remain considerably higher than the industry average in 2004, but the gap is expected to continue decreasing over time. Triad's ability to retain better-than-industry-average loss performance and the continued improvement in its expenses are key elements of the rating on the company. Capital will probably remain at least at the high end of the Standard & Poor's model's 'AA' range.
Ratings List Triad Guaranty Inc. Counterparty credit rating A/Stable/-- Triad Guaranty Insurance Corp. Counterparty credit rating AA/Stable/-- Financial strength rating AA/Stable
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