Brit's capital reorganisation no threat to rating - Fitch

Brit Insurance had its financial strength rating affirmed today after announcing plans to reorganise its capital structure.

Fitch Ratings affirmed Brit's A rating with a positive outlook.

The agency said: "The reorganisation is designed to generate distributable reserves at the holding company level which, in Fitch's opinion, will provide Brit with greater freedom to pursue its dividend strategy."

Brit announced its plans yesterday.

Fitch believed that the reduction of financial resources at the holding company level as a result of a 2004 dividend payment would have a low credit impact.

In the agency's view, the credit impact of Brit's reduced access to group resources would be largely offset by the improved ability of the group to source future capital from investors.