Moody's has downgraded the debt ratings of US-based Travelers Property Casualty, following the decision of its parent, Citigroup, to divest its property & casualty operations.
Ratings agency Moody's has downgraded the debt ratings of US-based Travelers Property Casualty, following the decision of its parent, Citigroup, to divest its property & casualty operations.
The agency lowered its senior debt rating to A1 from Aa3, and its trust preferred securities rating to A2 from A1.
Travelers Property Casualty is a holding company for subsidiaries that provide a broad range of insurance products and services for commercial markets, as well as personal lines, homeowners and motor insurance.
Citigroup has said it plans to divest its property & casualty operations by listing Travelers Property Casualty and spinning off any remaining shares to Citigroup shareholders.
Moody's said the company had benefited from the implicit support of Citigroup but the new debt rating reflected the relatively subordinated position of holding company creditors to policyholders of the operating insurers.
The agency affirmed the financial strength ratings of company's main operating subsidiaries at Aa2.
