S&P Lowers Trenwick Grp. Counterparty Ratings
NU Online News Service, Jan. 31, 3:45 p.m. EST?Standard & Poor's Ratings Services has lowered its counterparty credit ratings on Trenwick Group Ltd. and sub-holding companies?LaSalle Re Holdings Ltd. and Trenwick Amercia Corp.?to "CCC-" from "CCC+" and removed them from CreditWatch following Trenwick's addition of $107 million to year-end 2002 reserves.
S&P also said it lowered its counterparty credit and financial strength ratings on Trenwick America Reinsurance Corp., Dakota Specialty Insurance Co., LaSalle Re Ltd., and Insurance Corp. of NY to "CCC" from "BB-" and removed them from CreditWatch.
Counterparty credit and financial strength ratings of Chartwell Insurance Co. and Trenwick International Ltd. were lowered to "CCC" from "B+" and removed from CreditWatch.
Even after the reserve strengthening, tangible capital is only "marginally positive" and Trenwick's ability to service its remaining obligations is "increasingly uncertain," noted S&P credit analyst Karole Dill Barkley.
If management does not successfully refinance the April maturity of $75 million of senior debt, there is a covenant to default to the recently renewed bank letter of credit facility, she added.
© 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.