The management shakeup at bond insurer ACA Financial Guaranty Corp. continued this morning as deputy chairman and CEO Michael Satz announced he plans to resign in the near-term.
Satzs announcement this morning follows the departure on April 30 of former COO Maryam Muessel, who headed ACAs profitable collateralized debt obligation business. Muessels duties were taken over by William Tomljanovic, executive vice president of customized solutions. As for a replacement for Satz, a spokeswoman at ACA said: The expectation is that someone will be selected from outside of the company, but within the industry.
The company expects to make an announcement about a succession plan within the next several weeks, Satz said on the conference call this morning.
And at least one rating analyst believes these executive changes dont bode well for the companys plans for an initial public offering, which is expected to raise $125 million. The combination of the changes and capital concerns prompted both Standard & Poors and Fitch Ratings to place financial strength rating of ACA as well as its enhancement and corporate credit ratings on negative ratings watch.
Although the company denies that the unexpected management shuffles would endanger its IPO, Standard & Poors analyst Robert E. Green said the timing of these shifts inarguably render the prospect of a successful public offering less certain.
Nothing's more important than management in having a successful company, Green said.
Satz noted in the company's conference call this morning that he was resigning over personal issues wholly unrelated to the company's routine functions. In answer to an analysts question concerning his departure, Satz said that he would probably assume a board-level role following his resignation.
