S&P Turns Negative on FSA Seguros

S&P has revised its outlook to negative from stable on the global scale rating of FSA Seguros Mexico, amid troubles at the parent company in the US. “The negative outlook on FSA reflects the possibility that the FSA franchise has been damaged by the newly announced losses and that acceptance in the municipal market may diminish,” says S&P analyst Alfonso Novelo. “Although FSA’s first-half 2008 production results were very strong, in our view, FSA’s position as one of the better bond insurance underwriters may now be tarnished.” The outlook on the national scale rating remains stable, and S&P affirms the AAA global and national scale ratings.