Fitch Downgrades LandAmerica's IFS to 'BBB+'; Outlook to Negative

CHICAGO--(Business Wire)--
Fitch Ratings has downgraded the Insurer Financial Strength (IFS)
ratings of LandAmerica Financial Group's (LFG) insurance subsidiaries
to 'BBB+' from 'A-'. Fitch also downgraded LFG's Issuer Default Rating
(IDR) to 'BBB-' from 'BBB' and revised the Rating Outlook on all
ratings to Negative from Stable. A complete list of ratings follows
the end of the press release.

Fitch believes LFG's consolidated balance sheet fundamentals lag
national peers at a time in the market cycle where risk-adjusted
surplus, financial leverage and reserve redundancy are critical to
financial strength ratings.

LFG's financial leverage is considered high for the rating
category at slightly greater than 30% at June 30, 2008 after excluding
FHLB borrowings at the thrift. LFG renegotiated covenants with its
lenders, allowing a fixed charge coverage ratio less than 1.5 times
(x) for the second- and third quarter-2008 (3Q'08) and stepping up to
1.5x at year-end (YE) 2008 and beyond.

At YE 2007, LandAmerica's RAC ratio, at 110%, was lower than
industry averages of 140% and down significantly from the company's
RAC in 2006 of 158%. The Fitch RAC formula quantitatively tests
capital adequacy for several risks, including investment risks,
reserve adequacy, exposure to large losses, expense leverage and
agency risks.

LFG's statutory reserve release during 3Q'08 will effectively
eliminate the redundancy between statutory reserves and the actuarial
mid-point estimate that favorably impacts the RAC ratio. Further,
Fitch expects no growth in statutory surplus during 2008, which when
coupled with the impact of the reserve release could translate to a
RAC ratio lower than the current 110%.

Fitch has downgraded the following ratings:

LandAmerica Financial Group, Inc.

--Long-term IDR to 'BBB-' from 'BBB';

--Senior debt to 'BB+' from 'BBB-'.

Commonwealth Land Title Insurance Company

Commonwealth Land Title Insurance Company of New Jersey

Land Title Insurance Company of Pasadena

Lawyers Title Insurance Corporation

Title Insurance Company of America

Transnation Title Insurance Company

--IFS to 'BBB+' from 'A-'.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings
Douglas M. Pawlowski, CFA, 312-368-2054, Chicago
Gerry Glombicki, 312-606-2354, Chicago
or
Media Relations:
Sandro Scenga, 212-908-0278, New York

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