Fitch Ratings last week withdrew its ratings on Syncora Holdings Ltd. and its financial guaranty subsidiaries following the company's announcement in a regulatory filing that it was terminating its relationship with the rating agency.
Without the non-public information provided by Syncora, Fitch saw little reason to continue providing its ratings, it said.
"Fitch believes Syncora's financial guaranty franchise is effectively in run-off at the present time and that there is greatly reduced investor interest in continued coverage of this rating," Fitch said in a release.
Syncora said in its filing last week that it found ratings from Standard & Poor's and Moody's Investors Service to be sufficient because it had effectively stopped writing new business. Fitch in the past has withdrawn its ratings on other insurers - including Ambac Assurance Corp, MBIA Insurance Corp., and Radian Asset Assurance Inc. - following the companies' requests.
Syncora and its subsidiaries in July reached separate deals with former parent XL Capital Ltd. and Merrill Lynch & Co. that boosted its balance sheet through a net capital infusion and commutations.
Fitch said Syncora's future credit profile will rest on the resulting balance sheet due to those agreements as well as the Syncora's "highly uncertain" franchise value and business outlook. Syncora's financial guaranty subsidiaries - Syncora Guarantee Inc., Syncora Guaranty Ltd., and Syncora Guarantee Re - most recently held CCC insurer financial strength ratings from Fitch, while on rating watch positive.