Amended - Fitch Assigns 'AA' IFS Rating to FM Global de Mexico S.A. de C.V.; Outlook Stable

Business Wire, Sept 18, 2008

CHICAGO -- (This is a correction to the release of Sept. 15, 2008, and amends the denomination of FM Global's transactions.)

Fitch Ratings has assigned the following Insurer Financial Strength (IFS) rating to FM Global de Mexico, S.A. de C.V. (FM Global Mexico):

--IFS 'AA'.

The Rating Outlook is Stable.

FM Global Mexico is a newly formed insurance company wholly owned by Factory Mutual Insurance Company (Factory Mutual). FM Global Mexico, like its U.S.-based parent, will focus on providing comprehensive commercial property coverage that requires significant engineering expertise.

FM Global Mexico has been created to provide coverage for FM Global's current insureds that have locations in Mexico. FM Global Mexico will only insure commercial property in Mexico and all FM Global Mexico transactions will be peso- or U.S. dollar-denominated. Previously this business was written by fronting companies for Factory Mutual in Mexico. The initial capitalization of the company is US$20 million and anticipated business volume is expected to be modest relative to the entire organization.

The rating of FM Global Mexico is dependent upon a reinsurance agreement whereby FM Global Mexico cedes 99.9% of its premiums and losses to Factory Mutual. Additionally, there is a stop-loss agreement in place that cedes losses in excess of a 110% combined ratio back to Factory Mutual. The rating also reflects Fitch's view that FM Global Mexico is a core component of the organization's strategy of providing engineered loss-prevention services and insurance coverage on a global basis.

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.