Fitch Affirms AA Rating of CIGA Bonds

Fitch Ratings affirmed the “AA” rating on about $559.5 million in bonds that the California Insurance Guarantee Association issued in 2004 to pay claims for liquidated carriers.The rating outlook for the bonds is stable, Fitch said in a press release.The Legislature in 2004 authorized CIGA to issue bonds of up to $1.5 billion to pay for claims arising out of the rash of insolvencies in the late ‘90s and early 2000s. The bonds are secured by a first lien on a mandatory special benefit assessment charged to insurers writing comp policies in California and passed on to employers...