Fitch Withdraws Triad's Ratings

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has announced that it has withdrawn the ratings of Triad Guaranty Inc. and its mortgage insurance subsidiary Triad Guaranty Insurance Corporation (collectively, Triad).

Fitch has withdrawn the following ratings, which were on Rating Watch Negative:

Triad Guaranty Insurance Corporation

--Insurer financial strength (IFS) 'BB'.

Triad Guaranty Inc.

--Long-term issuer rating to 'CCC'.

--$35 million 7.9% fixed coupon senior notes due Jan. 15, 2028 'CCC/RR4'.

Today's action follows an announcement by Triad's management that it is transitioning its business into run-off and Fitch believes there is little investor interest in continued coverage of this rating.

Fitch notes that Triad's ratings had incorporated the full execution of the company's reinsurance facilities. In April of 2008, a third-party reinsurance provider notified Triad that it would be terminating a $95 million reinsurance facility on the grounds of a covenant violation. Triad disagrees with the reinsurer's conclusion and, as stipulated by the reinsurance contract, has initiated an arbitration process to settle the dispute. Fitch is not in a position to ascertain the ultimate outcome of the arbitration process, but notes that this reinsurance facility is a significant component of Triad's overall claims-paying resources.

Triad Guaranty is a holding company that provides private mortgage insurance coverage in the United States through Triad, its wholly owned subsidiary. For June 30, 2008, Triad Guaranty reported consolidated assets under Generally Accepted Accounting Principles of $1.1 billion and shareholders' equity of approximately $141 million.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.