Fitch Ratings maintained the rating watch negative on Royal & SunAlliance's (R&SA) group entities and debt issues following the recent preliminary court rulings on student loans.
Fitch believes the overall impact of the ruling will be relatively moderate, and the risks of such a decision have already been factored into the agency's ratings.
The court ruling relates to claims lodged by Wells Fargo and MBIA in relation to insurance policies issued on student loan portfolios.
R&SA is expected to appeal the decision once it has received the final opinion of the court. The final outcome of the case is unlikely to be reached for several months.
Fitch anticipates that Wells Fargo and MBIA would be awarded around $280m (£170m), should the appeal by R&SA fail.
Fitch said it continues to regard risk factors for R&SA to be fairly high, particularly when considered relative to the group's potential to absorb further losses.
Fitch said the ratings were initiated in response to investor demands. It expects to resolve the rating watch following the third quarter results.
