The negative outlook on CMIG reflects the negative outlook on HBOS PLC, HBOS' ambitious growth plans, and the impact of combining the different operations of the former Bank of Scotland and Halifax groups.
Standard & Poor's expects stand-alone capital to remain consistent with the ratings on CMIG.
CMIG is unique from other capital markets groups in that it is not affiliated with one specific brokerage firm," stated Mike Meisenbach, CPA, CCIM, member of CMIG and principal of Lee & Associates.
Membership in CMIG allows brokers to strategically align with the nation's top office investment professionals regardless of their association with a particular firm," added David Tilton, another CMIG member and senior managing director of Fredrick Ross Company in Denver.
The ratings on CMIG
reflect the company's strategic importance to Halifax PLC (AA/Stable/A-1+), its very strong business position, strong operating performance, and excellent capitalization.
In addition, Standard & Poor's affirmed its 'A+' junior subordinated debt ratings on Clerical Medical Finance PLC, which is guaranteed by CMIG.
The outlook revision reflects the negative pressures that CMIG is facing as a result of its ownership by HBOS PLC (AA-/Negative/A-1+; see related media release entitled "HBOS PLC and Related Entities Outlook Revised to Negative; Ratings Affirmed", published on Jan.
holds a very strong business profile, with an established market franchise in the U.
has a very strong business profile, with an established market franchise in the U.
aims to maintain a free-asset ratio (defined as total
The ratings on CMIG
reflect the company's strategic importance to its owner, Halifax Group PLC (Halifax; AA-/Watch Neg/A-1+), its very strong business position, strong operating performance, and strong capitalization.
The proceeds of the issue will be used to fund the rapid new business growth of CMIG
and its subsidiaries.