S&P May Cut XL On Charge News
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 on CreditWatch with negative implications after XL Capital Ltd announced its third-quarter net income would sustain a $160 million after-tax reduction,.
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.
The $160 million impact relates to old losses from its North American reinsurance operations, according to Hamilton, Bermuda-based XL.
S&P said it would closely follow developments at the group as they evolve.
"Following the completion of further analysis and receipt of additional information, Standard & Poor's might reconsider the status of the members of XL America Pool as core to XL Capital Group," said Standard & Poor's credit analyst Karole Dill Barkley in a statement. "If Standard & Poor's revises the status, the ratings impact is not expected to exceed two notches."
Ms. Dill Barkley also said that if the core status is not revised, then the ratings on the pool members would be affirmed.
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