Louisiana Insurance

Fiitch Ratings, said today it may need to be citizens of Louisiana Corp. things “on the creditworthiness of view negative, after the company audited financial statements this summer.

The citizens and citizens has been for any hours of credit by Fitch, demotions and other rating agencies, after it is published in March 2007, that insurers financed by the public last instance was unable to balance their books, because the computer had problems and did not have massive reports of reliable financial data since Hurricane Katrina.

In his report Wednesday, Fitch reaffirmed its “investment grade” BBB-Ratings, said, but it may, the company credit-hours, if citizens final product in the middle group.

“While Fitch recognizes that these problems have not had a negative impact on the company’s capacity on the use of its debt, the continued delay in producing audited financial statements severely limited financial flexibility, particularly when such statements are not final before the traditional June 1 start of hurricane season. As such, there is still uncertainty about the ability of the company on the issuance of additional debt and their operations large catastrophe losses, “says the report.

The citizen has extracted data from the computerization of the system has failed and said it was Fitch expects that annual gross by the end of June for external auditors to the audited financial statements that are acceptable for investors.

Citizens Chief Executive John Wortman, tried to turn around the company during the past year, said that assessments must be reviewed by the end of August.

It is precisely now, citizens, cooperation with financial advisers to restructure $ 300 million at auction at rates of loans, because interest rates have provided 4 per cent to about 12 per cent, costs a lot more companies to pay the loans were to pay claims from Hurricane Katrina.

Wortman said the creditworthiness of citizens should not limit their opportunities, what to do with bonds. “It does not impact,” he said.

Citizens lack of books was a matter of concern for credit rating agencies.

In March 2007, Moody’s Investors Service has custody of citizens for possible downgrading, but does give a negative view of credit until last September. At this point, the company also claimed that their underlying Baa2 credit rating, which is considered a “moderate credit risk”, that “maybe in possession of some speculative characteristics.

Moody’s noted concerns similar to those of Fitch. “The surveillance negative reflects the continuing lack of audited accounts, the limit potentially LA citizens financial flexibility, including the ability success of the event question of borrowing in the aftermath of a hurricane” September 2007, the report said .

Standard & Poor’s, the citizens hours of credit in March 2007, withdrawn, but it August. Citizen has a rating of A-by Standard & Poor’s, which means that the company has strong capacity to deliver its financial obligations, but it is a little more vulnerable to adverse changes. ”

Standard & Poor’s noted that it did not specify what the consequences of the lack of records may have on citizens “, and that limits the ability of insurers to issue specific assessments to owners of the insured for the building means that the company pay its bills.