SCOR's S&P Ratings Put On CreditWatch

NU Online News Service, June 18, 10:36 a.m.EDT?Standard & Poor's Ratings Services said it hasplaced all its long-term ratings for Paris-headquartered reinsurerSCOR and its subsidiaries on "CreditWatch" with negativeimplications.

The ratings involved include the reinsurers risk of default,"A-Minus" counterparty credit and insurer financial strengthratings.

Marcus Rivaldi, credit analyst at New York-based S&P,pointed to SCOR's "disappointing" 2003 first-quarter results,which, he said, further indicate a "weakened although still strong"business position.

SCOR in 2002 reported a wider-than-expected loss as it increasedreserves by more than $55 million to cover unprofitable policiesunderwritten in the late 1990s.

In 2002, the company reported a full-year loss of 455 millioneuros ($494.6 million), which is bigger than the 278 million euroloss ($302.2 million) from its previous year as well as thecompany's earlier loss estimate.

Mr. Rivaldi added that S&P is also concerned with apotential for further reserve strengthening and its material effecton the reinsurer's capital.

S&P is planning to meet soon with SCOR group management toresolve its CreditWatch status. The rating agency added that if itdecides to lower ratings on SCOR and its subsidiaries, thedowngrades won't be for more than "one or two notches."