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TEXT-S&P rates Fidelity National Financial notes
August 24, 2012 / 2:55 PM / 5 years ago

TEXT-S&P rates Fidelity National Financial notes

Aug 24 - Standard & Poor's Ratings Services said today that it assigned its
'BBB-' senior debt rating to Fidelity National Financial Inc.'s  (FNF)
$400 million senior note issue. The notes will mature on Sept. 1, 2022, and were
priced at 99.513 to yield 5.564%.

The ratings on FNF and the insurer financial strength ratings on the members 
of the Fidelity National Title Insurance Cos. Group (FNF Title) reflect the 
group's strong competitive position, effective management of operations and 
expenses during cyclical fluctuations in mortgage market activity, and 
generally better profit margins than industry averages. Principally offsetting 
the title group's strengths is its narrow focus on a cyclical industry. At the 
holding company this monoline focus is being addressed by expansion into 
business outside the real estate industry. Although the company has a 
generally positive strategic equity investment track record in these other 
businesses, we view this element of operations as a moderate negative in that 
it is difficult to link management's core competencies in real estate and 
title insurance with the business of the acquired companies. Also, some 
business lines have weaker business risk profiles than FNF Title. Most 
recently, for two strategic investments, (Remy; a manufacturer of electrical 
components for automobiles, and ABRH/O' Charley's, a restaurant business) FNF 
has acquired a majority ownership of these companies and will be reporting 
these businesses on a consolidated basis.

Total obligation to capital on a pro-forma basis will increase to about 27%. 
We expect FNF's EBITDA interest coverage ratio to be about 7x. Both metrics 
are comfortably consistent with criteria for 'BBB' rated insurance holding 
companies. In calculating our leverage metrics for FNF, we will exclude the 
debt, interest, and related items for its Remy and restaurant segments. We do 
this to reflect that financial obligations for these businesses are solely the 
obligation of those respective legal units, and are not guaranteed or 
otherwise supported by FNF.

RELATED CRITERIA AND RESEARCH
     -- Fidelity National Financial Inc. and its Operating Subsidiaries, April 
27, 2012
     -- Group Methodology, April 22, 2009

RATINGS LIST
Fidelity National Financial Inc.
 Counterparty Credit Rating                 BBB-/Stable/--

New Rating
 Fidelity National Financial Inc.
  $400 Mil. Senior Unsecured Notes          BBB-

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