CIFG Holding, the holding company for CIFG's financial guaranty subsidiaries, announced late today that it has formally requested that Fitch Ratings withdraw the insurer financial strength ratings for the following affiliated companies: CIFG Guaranty, CIFG Assurance North America and CIFG Europe.
The firm thinks that Fitch is not in a good position to "accurately determine the appropriate capital requirements for CIFG's insured portfolio." Fitch rates a smaller portion of the insurer's insured deals, currently 33% of policies written as compared with over 70% by the other two rating agencies individually. Specifically, Fitch does not formally rate many of the RMBS and ABS CDO transactions that it identifies as the source of their greatest concern. Furthermore, the rating rates less then 30% of CIFG's Global Public Finance and Infrastructure deals, which represent a key part of the bond insurer's future growth strategy.