Moody's cuts Arrowhead

Moody's Investors Service said it downgraded the corporate family rating of Arrowhead General Insurance Agency, Inc. to B3 from B2 following the company's amendment of its credit facilities and related restructuring initiatives.

Arrowhead's first-lien credit facilities were downgraded to B3 from B2 and its second-lien credit facility to Caa1 from B3.

The outlook is stable. This concludes a review for downgrade that began on Dec. 24.

"Arrowhead's performance has been hurt by the prolonged soft market for property & casualty insurance and the severe economic recession," Bruce Ballentine, Moody's analyst, said in a statement.

"Arrowhead has emerged from the restructuring as a smaller firm but with reasonably strong EBITDA and operating cash flows relative to its remaining debt," Ballentine said.

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