A ratings company said it plans to downgrade the financial status of 17 Florida insurance companies, sending shockwaves around the struggling industry and putting millions of homeowners in danger of violating the terms of their mortgages. 

The insurer ratings firm Demotech has sent letters to the insurers announcing that it intends to lower their stability ratings from “A,” or exceptional, to “S” (substantial) or “M” (moderate), according to Florida Insurance Commissioner David Altmaier. In a July 21 letter to Demotech President Joseph Petrelli, Altmaier called Ohio-based Demotech’s actions unprecedented, with potential negative effects on millions of the state’s homeowners.

“This is an example of inconsistent, monopolistic power of a select rating agency and is trying to exert coercive influence over Floridians and policymakers in an effort to thwart public policy according to its own opinions,” Altmaier said in the letter, which accuses Demotech of inconsistencies and discrepancies in ratings methodology and decision-making.