S&P May Cut XL On Charge News

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NU Online News Service, Oct. 20, 2:40 p.m.EDT?Standard & Poor's in New York has put the"double-A" financial strength ratings of the XL America Pool onCreditWatch with negative implications after XL Capital Ltdannounced its third-quarter net income would sustain a $160 millionafter-tax reduction,.

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S&P, which acted within hours of XL's announcement Friday,also put various other XL ratings on CreditWatch, including the"A-plus" senior debt of XL Capital Ltd.

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The $160 million impact relates to old losses from its NorthAmerican reinsurance operations, according to Hamilton,Bermuda-based XL.

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S&P said it would closely follow developments at the groupas they evolve.

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"Following the completion of further analysis and receipt ofadditional information, Standard & Poor's might reconsider thestatus of the members of XL America Pool as core to XL CapitalGroup," said Standard & Poor's credit analyst Karole DillBarkley in a statement. "If Standard & Poor's revises thestatus, the ratings impact is not expected to exceed twonotches."

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Ms. Dill Barkley also said that if the core status is notrevised, then the ratings on the pool members would beaffirmed.

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