They re looking at their last alternative for raising capital and it s not at all certain they will succeed. Fitch didn t specify how many notches it might lower ACA s rating. ACA said in a statement that it was optimistic that it would raise funds in the short term. The company said the Fitch review does not reflect concern about its portfolio and operations. Still, a lower credit rating would likely force the company to stop writing insurance policies because bringing a single-A rating to lower graded issuers is pivotal to its success.
Some institutions are limited to securities with investment-grade ratings.
They have been tainted by the ACA problem.