| Moody's gives 'Aaa' rating to Citizens bonds
Moody's Investors Service has assigned a "Aaa" rating to $950 million of bonds to be issued by Citizens Property Insurance Corp. The proceeds of the 2007 senior secured bonds will be used for "pre-event" liquidity resources. The rating is based on a financial guaranty insurance policy provided by Financial Guaranty Insurance Company (rated Aaa for insurance financial strength with a stable outlook). In the same rating action, Moody's assigned an A2 underlying rating to the 2007 bonds. The outlook for the ratings is stable. .
AAA insurance agency recognized for growth
AAA Carolinas' fledging insurance agency has become the second biggest seller of personal lines insurance in North Carolina in only eight years. The Insurance Journal rated the American Auto Club Insurance Agency, which is owned and operated by AAA Carolinas for the public and its members, as the 22nd largest seller of personal lines insurance in the United States. The Insurance Journal placed the company's personal lines total premium at $41 million with revenues of $6 million. .
Fitch Rates Irvine Reassessment District No. 85-7, California's ...
NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns a rating of 'AAA/F1+' to the $51,500,000 City of Irvine, California Reassessment District No. 85-7 Limited Obligation Improvement Bonds, Adjustable Rate Series. The long-term 'AAA' rating is based on the support of a municipal bond insurance policy provided by Financial Security Assurance Inc. (FSA) which insures scheduled payments of principal and interest on the bonds, effective as of the date of issuance of the bonds. The insurance policy will extend to Sept. 2, 2032, the maturity date of the bonds. The policy does not provide coverage for any bonds converted to the fixed rate and consequently the long-term rating will no longer apply to bonds so converted. The short-term 'F1+' rating is based on the liquidity support of a standby bond purchase agreement (SBPA) provided by Dexia Credit Local, acting through its New York Branch.
RI, Australia to decide on a free trade agreement in 2008
JAKARTA (Antara): Indonesia and Australia will decide in 2008 whether they will conclude a free trade agreement (FTA) after conducting a joint feasibility study starting in August 2007. On Friday, President Susilo Bambang Yudhoyono and Australian Prime Minister John Howard during a meeting in Bali have agreed to conduct a joint feasibility study to evaluate free trade agreement between Indonesia, ASEAN and New Zealand. The study is expected to serve as a valuable reference and produce recommendations the two countries may need in deciding their moves before the middle of 2008. "Furthermore, the feasibility study will also evaluate how a bilateral agreement can be implemented consistently under the multilateral system of World Trade Organization (WTO)," said Trade Minister Mari Elka Pangestu.
Sovereign Bank Celebrates Ten Years as AAA Preferred Supplier
BOSTON, July 26 /PRNewswire-FirstCall/ -- Sovereign Bank announced today it has reached the ten-year milestone as a Preferred Supplier for the Automobile Association of America (AAA). AAA Preferred Suppliers are carefully evaluated and chosen for their reputation in their industry and their ability to provide superior value to AAA service providers. "Sovereign is proud of the solid track record we've built with AAA and its network of AAA clubs and service providers," said Michael Paez, senior vice president of Commercial Vehicle Finance with Sovereign Bank. "AAA service providers are the real winners as they benefit from special rates on vehicle and capital equipment financing and credit card processing. We look forward to the next ten years of trust." According to Doug McLendon, director, AAA Roadside Programs and Benefits, "Sovereign Bank understands the unique business needs of AAA service providers and continues to provide best-in-class service to this important network.
Investors exit stocks on fears credit drying up
Investors shed their rose-colored glasses Thursday and cowered as they contemplated the possibility that the days of easy money would end with ugly consequences called a credit crunch.
Stocks fell around the world and investors sought safety in U.S. Treasuries as they worried about bad mortgage and corporate loans and feared that lenders would become reluctant to hand out money. The Dow Jones industrial average dropped 311.50 points -- at one point, it was down nearly 450 points -- and corporate bond prices fell as investors turned their back on anything providing a hint of risk.
"It seems pretty relentless," said Steven Luetger, fixed-income manager for Mesirow Financial. "What's surprising is that even AAA agency paper is getting hurt almost as badly as high-yield bonds.
Bond risk nears record as investors flee corporate debt
NEW YORK: The risk of owning corporate bonds soared to the highest on record in the US and Europe on rising concern that banks and hedge funds face widening losses from subprime mortgages and leveraged buyouts.
The cost to protect debt of companies from Goldman Sachs Group to Deutsche Bank and Australias Westpac Banking Corp jumped as investors shunned all but the safest of debt, according to credit-default swap traders.
A risk benchmark in Japan had its biggest one-day increase on record. Risk premiums rose beyond records reached in 2005 when General Motors Corp and Ford Motor Co lost their investment-grade credit ratings.
More than 40 companies worldwide reorganised or abandoned borrowing plans in the past month as investors balked at extending credit. The retreat has forced banks to take on at least $32bn of debt and threatens to bring an end to a record run of LBOs, which topped $690bn this year.
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