FIDELITY NATIONAL FINANCIAL, INC.
Fitch Ratings has assigned a 'BBB' rating to
Existing ratings assigned to FNF and its affiliates are unaffected by today's rating action.
Key Rating Drivers
The rating assigned to the new senior unsecured notes is equivalent to FNF's existing senior unsecured ratings. The proceeds from the note issuance will be used to repay senior notes maturing in
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Holding Company Ratings
A sustained increase in financial leverage above 30%;
A sustained reduction in GAAP fixed-charge coverage below 7.0x;
A reduction in the 'A' IFS rating of the title operation, which is currently the key driver of the 'A' group credit profile against which the holding company IDR is notched, or a two-notch downgrade of the 'BBB+' standalone credit profile of FGL;
A shift in business mix to place materially greater emphasis on the lower rated life operations.
Title Insurance Company Ratings
A sustained Title RAC score below 130% or deterioration in capitalization profile that would lead to a material weaker balance sheet.
Life Insurance Company Ratings
A one-notch decline in the 'BBB+' standalone credit profile of FGL to 'BBB' could result in a one-notch downgrade of FGL's IFS ratings;
Fitch's view of FGL's standalone profile could decline based on the following metrics:
---FGL's consolidated RBC ratio falling below 300% and Prism score in the low end of 'Adequate';
---Operating ROA below 0.5% for four consecutive quarters;
---Risky asset ratio increases above 160%.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Holding Company Ratings
A sustained financial leverage under 16%;
A sustained increase in GAAP fixed-charge coverage of 12.0x or higher;
An upgrade in the group credit profile to above 'A'.
Title Insurance Company Ratings
A solid reserve position such that GAAP reserves develop favorably on a consistent basis;
Improvement in capital strength demonstrated by a sustained Title RAC score greater than 200%;
A sustained pretax GAAP operating margin of 12% or better;
Demonstration of greater operating performance stability through the current economic downturn relative to the crisis of 2008-2009.
Life Insurance Company Ratings
Fitch's view of FGL's standalone profile could improve based on the following metrics:
---Prism capital model score well into the 'Strong' category on a sustained basis.
---Continued stable investment performance.
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
Date of Relevant Committee
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
RATING ACTIONSENTITY/DEBT RATING
senior unsecured
LT BBB New Rating
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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