Top Debt-Rater Moody’s Praises Florida’s Citizens’ Depopulation Efforts
Jul 31, 2013
Moody’s, considered to be the foremost debt-rating firm, issued a July 29, 2013 report on Florida’s Citizens Property Insurance Corporation (“Citizens”), praising the State of Florida for its efforts to depopulate policies into the private market.
In its report, Moody’s wrote that ” . . . Citizens’ reforms address the growing sentiment within Florida government and at Citizens that the state’s “insurer of last resorts'” risk exposure has grown too large. (Florida’s) new laws will decrease Citizens’ exposure by aiding ongoing depopulation efforts and improving governance. The goals of the new laws include: a near-term decrease in policy count; a reduction in risk exposure for both Citizens and the assessment base; and less likelihood of the issuance of additional debt or corresponding assessments. The legislation augments depopulation efforts, including the establishment of a private insurance clearinghouse and new restrictions on eligibility for coverage and maximum policy size. Less risk exposure decreases the likelihood of additional bonding and potential corresponding assessments to pay debt service . . .”
Moody’s positive rating of Citizens was reported exclusively by the Miami Herald’s Doug Hanks. To view the complete article, click here.
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