Fitch Downgrades First American

Fitch downgraded the Santa Ana, Calif.-based company's credit to "BBB-" from "BBB," implying First American still has "lower medium grade" credit quality.

Fitch also downgraded First American's issuer default and preferred stock ratings.

First American lost $3.1 million last year, stung by flagging property values. Revenue in the title insurance division which writes policies that promise to cover costs in case the deed transferring ownership of property has a mistake declined 19 percent.

Title insurance is typically purchased when property is bought and sold. In a housing slowdown, fewer people are buying homes, so not as many need to buy title insurance.