S&P Rates Employers Re
NU Online News Service, May 29, 4:20 p.m. EST?Standard & Poor's in New York announced that it lowered the financial strength and credit ratings of Employers Re Corp. to "double-A-plus" from "triple-A" this afternoon.
Both S&P and Employers Re separately clarified that the rating downgrade is the result of a new group rating methodology adopted by S&P in late April.
"The rating actions reflect ERC's very strong stand-alone financial characteristics," said Grace Osborne, S&P credit analyst, in a statement about the downgrade. She added that the new group rating criteria, announced on April 23, limits the amount of support provided to a strategically important subsidiary to within one notch of the parent.
In a separate statement, Overland Park, Kansas-based Employers Reinsurance Company noted that under S&P's new criteria, since parent, GE, is a multi-faceted enterprise rather than the insurer, the reinsurance company cannot be considered a "core" subsidiary. "Core" subsidiary status would have supported a "triple-A" rating.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.