S&P cuts Affirmative Insurance

Standard & Poor's said it lowered Affirmative Insurance Holdings Inc.'s counterparty credit rating to CCC+ from B- and the counterparty credit and financial strength ratings of Affirmative Insurance Co. and Insura Property & Casualty Insurance Co. to BB- from BB.

The outlook is negative.

Subsequently, the agency withdrew the ratings at management's request.

S&P said the downgrades and negative outlook reflect its belief that the company will continue to face difficult operating conditions and will be pressured to meet its debt covenants and that the low barriers to entry in Affirmative's chosen market as well as tough competition will continue to weigh heavily on earnings.

At the same time, the agency believes the company maintains a good management team and a unique market niche.

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