American Bankers Insurance Off S&PWatch; Ratings Afmd.
The outlook is stable.
The affirmation follows the announcement that ABIG and Cendant Corp. have terminated their merger agreement. Standard & Poor's believes that the $400 million in cash received by ABIG from Cendant as a part of the termination agreement will strengthen ABIG's capital position, thus giving the group added resources to support growth and its current operations.
The ratings on ABIG were placed on CreditWatch following the announcement that the group had signed a merger agreement with American International Group Inc. (AIG). The CreditWatch listing on ABIG was maintained after the agreement with AIG was terminated and a new one was signed with Cendant. Most recently, the CreditWatch listing on ABIG with negative implications reflected Standard & Poor's negative CreditWatch listing on Cendant, which has yet to be resolved.
The current ratings reflect ABIG's strong business position as a leading provider of credit insurance products and its consistent strong earnings. Standard & Poor's expects continued healthy operating results, supported by excellent capitalization in the 140%-160% range.--CreditWire
OUTSTANDING RATINGS AFFIRMED AND REMOVED FROM CREDITWATCH Rating American Bankers Insurance Group Inc. Counterparty credit ratings BBB+/A-2 Commercial paper A-2 Senior debt BBB+ Preferred stock BBB American Bankers Insurance Co. of FL American Bankers Life Assurance Co. of FL American Bankers Insurance Co. of Florida (New Zealand Branch) Financial strength rating A+
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|Date:||Oct 15, 1998|
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