|
|
 |
|
Viewing report
|
|
|
|
ARCHIVE | Criteria | Insurance | General: Financial Guaranties: Will Multiline Insurers Pay When They've Promised To? Feb 03
Standard & Poors, Feb 2003
Abstract
Events over the past year starkly reinforce the need for investors to be certain that insurers providing financial guaranties pay in full and on demand. This concern-that otherwise financially strong insurers might be unwilling to play by the 'pay now/litigate later' rules of the capital markets-prompted Standard & Poor's Ratings Services to introduce its Financial Enhancement Rating (FER) service in 2000. The FER provides investors with a specific opinion regarding insurance companies' willingness to pay financial guaranty claims on a timely basis. Financial guaranties are provided as credit support in capital-markets transactions and are designed to pay in the event of a default on the underlying credit. In a financially guaranteed transaction, bondholders expect prompt payout under the terms of...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
|
|
|
|
