A.M. Best Revises Outlook to Stable for R.V.I. Guaranty Co., Ltd and Its Operating Subsidiaries

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has revised the outlook to stable from negative and affirmed the
financial strength rating of B++ (Good) and issuer credit ratings (ICR) of
"bbb+" of R.V.I. Guaranty Co., Ltd (RVI Guaranty) (Bermuda) and its
Connecticut-domiciled subsidiaries, R.V.I. America Insurance Company (RVI
America) and R.V.I. National Insurance Company (RVI National) (collectively
known as RVI).

RVI is a specialty insurance group that primarily writes residual value
insurance. It is one of the largest insurance companies that specializes in
underwriting and marketing of residual value insurance risk for clients engaged
in asset-based financing. Coverage is purchased by participants in asset finance
transactions to obtain third-party financial support often due to regulatory and
accounting issues. Residual value insurance protects against the market value of
an asset falling below the insured (guaranteed) value at a specified date.

The ratings reflect the stabilization of RVI`s operating results during 2009 and
adequate risk-adjusted capitalization resulting from actions taken in late 2008
to improve profitability and reduce risk. RVI`s operating results suffered
during 2008 as the downturn in the economy resulted in a decline in the market
value of its insured assets. This in conjunction with the levered nature of its
business model (insured risk/capital), caused its risk-adjusted capitalization
to deteriorate.

The stable outlook reflects the improvement in RVI`s operating results and its
adequate risk-adjusted capitalization.

These positive rating factors are somewhat offset by RVI`s narrowed business
profile; the fact that RVI`s primary business segments-passenger vehicle and
commercial equipment-are highly dependent upon the performance and cyclicality
of the asset-based financing industry; and potential loss exposure stemming from
two classes of insured assets it is not currently underwriting: financial
guaranty and commercial real estate. In addition, RVI ceased underwriting high
risk (asset risk) coverage and now primarily provides lower levels of risk
coverage within the passenger vehicle line of business. This decision, along
with a less robust asset leasing market, will likely constrain premium growth in
the near future.

For access to special reports, analytical methodologies and transactions
relating to structured finance, please visit http://www3.ambest.com/sfc/.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts:
Emmanuel Modu, 908-439-2200, ext. 5356
emmanuel.modu@ambest.com
or
Elmo Chin, 908-439-2200, ext. 5227
elmo.chin@ambest.com
or
Public Relations:
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com

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