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Moody's cuts Allstate ratings after Q4 loss

Discussion in 'Financial Cents' started by hacon1, Jan 29, 2009.

  1. hacon1

    hacon1 Monkey+++

    Moody's cuts Allstate ratings after Q4 loss

    Thu Jan 29, 2009 6:29pm EST

    NEW YORK, Jan 29 (Reuters) - Moody's Investor Service on Thursday downgraded ratings on insurer Allstate (ALL.N: Quote, Profile, Research, Stock Buzz) after the company reported a $1.1 billion quarterly loss.

    The agency cut the company's long-term senior debt rating by one notch to "A3," or seventh-highest investment grade. It lowered its insurance financial strength rating to "Aa3," or fourth-highest investment grade. The outlook on all ratings is stable.

    "We expect continued investment volatility risk and credit losses given the turbulent financial and economic climate," said Moody's senior credit officer Pano Karambelas.

    Allstate shares earlier tumbled 20 percent after the company surprised Wall Street with its loss, weighed down by large losses on investments that have turned bad because of the global credit crisis.

    Operating earnings also fell short of analyst estimates. For more see [ID:nN29283157].

    Standard & Poor's responded by cutting its counterparty and financial strength ratings by one notch to "AA-minus", or fourth-highest investment grade.

    (Reporting by Ciara Linnane; Editing by Dan Grebler)
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