STEWART INFORMATION SERVICES CORPORATION
Fitch Ratings has assigned a 'BBB-(EXP)' rating to
No rating actions were taken on other existing STC ratings.
Key Rating Drivers
The proceeds from the note issuance will be used to repay all outstanding amounts under the current term loan and for general corporate purposes. Financial leverage is anticipated to modestly increase but remain with rating tolerances with a long-term target of 25% or lower.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Sustained GAAP pretax operating margin above 8%;
Sustained RAC score above 175%;
Sustained financial leverage of 25% or below and fixed-charge coverage above 7.0x.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Sustained GAAP pretax operating margin below 3%;
Sustained Financial leverage above 30%;
Sustained RAC score below 125%;
The Outlook could be revised to Stable if neither the upgrade or downgrade sensitives are met.
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 '
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.
RATING ACTIONS
Entity / Debt
Rating
senior unsecured
LT
BBB-(EXP)
Expected Rating
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VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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