Xerox Corp’s Financial Services Life Insurance Co and its California unit Xerox Financial Life Insurance Co have seen the rating on their claims-paying ability return to single-A from A-plus by Standard & Poor’s Corp, because of Xerox Financial’s slower than anticipated move out of life insurance, shrinking earnings from lower levels of new business and volatility in the company’s Collateralised Mortgage Obligations portfolio. Capitalisation is $140m and liquidity is strong because of the company’s unusual fixed liability structure encompassing substantial early withdrawal charges.
