Fitch cuts First American

Fitch Ratings said it downgraded and placed on Rating Watch negative First American Corp.'s issuer default rating to BBB from BBB+ and senior unsecured debt rating to BBB- from BBB, and First American Capital Trust's trust preferred securities to BB+ from BBB-.

The downgrade is based on a significant deterioration in First American's pro forma capital adequacy, the agency said.

Ratings may be downgraded one or two notches if the company does not increase capital to its title subsidiaries, Fitch said.

Ratings could benefit from the $115 million that First American Corp. gave to First American at the end of the first quarter via a capital infusion, the agency noted.

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