Moody's confirms Assurant

Moody's Investors Service said it confirmed the Baa1 senior debt rating of Assurant, Inc. and the A2 insurance financial strength ratings of the company's lead insurance operating subsidiaries.

Moody's said that the rating action concludes a review for possible downgrade that was initiated on July 17, 2007, following the company's announcement that its CEO, CFO and three other senior managers had received "Wells" notices from the SEC and had been placed on interim administrative leave.

The ratings' confirmation is based on Moody's belief that the company's fundamental businesses are strong; however, the outlook is negative reflecting uncertainty around the final outcome of the SEC's investigation, the agency said, noting that the rating confirmation reflects the company's continued strong market presence in its various specialty lines of business, along with strong profitability, moderate financial leverage, good asset quality and reasonable underwriting leverage, somewhat offset by exposure to natural catastrophes and potential stress in the company's warranty and debt/credit product lines as a result of a slowing U.S. economy.

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