Standard & Poor's Ratings Services has raised its long-termcounterparty credit and insurer financial strength ratings onFrance-based reinsurer SCOR SE to "A" from "A-minus."

The announcement Friday from S&P's London office citedimproved non-life fundamentals and balance sheet resilience asreasons for the upgrade of insurer financial strength ratings ofcore operating subsidiaries as well as long-term counterpartycredit ratings.

The outlook for the SCOR ratings is stable, S&P said.

"The upgrade reflects our view of the continuing positive trendin SCOR's non-life underwriting performance and recognizes theresilience of SCOR's financial and business profile to majorfinancial shocks," said Standard & Poor's credit analyst MarkColeman.

Mr. Coleman added, "We believe that SCOR has, over time,successfully restored its financial strength and has reduced anddiversified its risk profile, and this appears evident amid thecurrent financial turmoil. Added to this, the January reinsurancerenewals indicate a positive trend in pricing adequacy, which webelieve will provide further earnings momentum over the ratingshorizon and will offset some of the decline in investmentyields."

According to the report, SCOR's enterprise risk managementprogram is assessed as adequate with a positive trend, S&Psaid, noting, "We believe SCOR has made significant progress inimplementing the best practices of the predecessor companies, butkey elements of the risk management structure, system of controlsand risk-taking strategy have only recently been formallyapproved."

The report said SCOR has "reasonably withstood the currentfinancial crisis, however, which is a positive indicator. Theassessment is based on a strong risk management culture, strong orat least adequate risk controls for the group's major risks, andadequate strategic risk management."

Mr. Coleman said the ratings reflect S&P's view of SCOR'sstrong competitive position, strong capitalization, strongliquidity and invested asset quality, as well as its commitment tobuilding a strong enterprise risk management program.

The outlook on all of the ratings is stable.

In May 2007 Swiss reinsurer Converium accepted a purchase offerfrom SCOR. Converium was downgraded in 2004 by S&P, A.M. Bestand Moody's. SCOR had previously been downgraded. It wasanticipated that the acquisition would enhance SCOR's marketposition.

According to data supplied by S&P, SCOR's ratings historysince 2002:

o Oct. 21, 2002--downgraded to an "A" from an "A-plus."

o Oct. 30, 2002--downgraded to "A-minus."

o July 4, 2003, downgraded to "triple-B-plus."

o Nov. 6, 2003--downgraded to "triple-B-minus."

o Dec. 2, 2003--upgraded to "triple-B-plus"

o Aug 1, 2005--upgraded to "A-minus."

o March 13, 2009--upgraded to "A."

Looking ahead in 2009, Mr. Coleman said S&P expects SCOR tolower its combined ratio to below 99 percent, to earn a non-lifereturn on revenue of at least 9 percent, and to maintain positivenew business margins.

"We expect capital adequacy to remain at least in the 'A' range,and do not anticipate any capital raising needs except following amajor catastrophic event or a series thereof," Mr. Coleman said,adding that S&P does not expect any material aggregate reservestrengthening, and it expects SCOR to "actively manage itsproportional treaty portfolio should there be any increase inclaims frequency or erosion of pricing adequacy in the primarymarkets."

S&P said it does not anticipate any upward rating movement.The ratings may be lowered if the resolution of the "outstandingmaterial litigation issues is significantly negative to SCOR'scapital position, or if there is a steep decline in the creditquality of SCOR's fixed income portfolio."