FNF Fidelity National Financial Inc

A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of �a� of Fidelity National Financial Group (Fidelity) and its eight title insurance members. In addition, A.M. Best has revised the outlook to negative from stable and affirmed the ICR of �bbb� of the parent holding company, Fidelity National Financial, Inc. (Jacksonville, FL) (NYSE: FNF). (See below for a detailed listing of the companies and ratings.) The ratings reflect Fidelity�s favorable capitalization and strong market profile as one of the largest title insurance groups in the United States. These positive rating factors are somewhat offset by Fidelity�s challenge to sustain and manage operating performance through the current downswing in the real estate cycle, which has resulted in a significant decline in operating revenue and negative earnings. Furthermore, Fidelity�s financial leverage measures have increased recently as evidenced by an increase in its debt/capital ratio to 32% as of the close of third quarter 2008, up from 27% as of the close of second quarter 2008. Fidelity�s revised rating outlook is based on the title group�s recent announcement of $262 million in reserve strengthening due partly to higher than expected adverse development of claims from policy years 2006 and 2007, along with a somewhat more conservative estimate of expected claims from the current policy year. This caused a pre-tax loss of nearly $280 million for third quarter 2008 and is expected to result in a sizeable operating loss for the full year, as the slowdown in housing markets continues to pressure revenues and earnings. While Fidelity�s active management of its flexible cost structure along with the recent announcement of a 50% reduction in shareholder dividends is expected to help mitigate the ongoing negative impact of the current real estate down cycle, the group will be challenged to achieve positive operating results for the remainder of 2008 and into 2009. The outlook also reflects pressure on the ratings due to increased financial leverage as the group has increased borrowings from its revolving bank credit facility to bolster its liquid assets following the illiquidity of investment holdings in the Reserve Primary Fund, a money market fund that had significant holdings in Lehman Brothers securities. While this increased leverage is expected to be reduced once holdings in the money market fund are redeemed, A.M. Best will continue to monitor Fidelity�s financial leverage and flexibility given the current environment in the financial markets, which have resulted in reduced liquidity and access to capital. The FSR of A (Excellent) and ICRs of �a� have been affirmed for Fidelity National Financial Group and its following members: Alamo Title Insurance Chicago Title Insurance Company of Oregon Chicago Title Insurance Company Fidelity National Title Insurance Company National Title Insurance of New York, Inc. Security Union Title Insurance Company Ticor Title Insurance Company of Florida Ticor Title Insurance Company The ICR of �bbb� has been affirmed for Fidelity National Financial, Inc. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.