A.M. Best Downgrades Ratings of SCOR.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 10, 2003 A.M. Best Co. has downgraded the financial strength rating to B++ (Very Good) from A- (Excellent) of SCOR SCOR Scientific Committee on Oceanic Research SCOR Supply Chain Operations Reference model SCOR Small Corporate Offering Registration SCOR Specialized Center of Research (White Plains, NY) SCOR Second Cousin Once Removed (Paris, France) and its guaranteed subsidiaries. At the same time, A.M. Best has downgraded the ratings on debt instruments issued or guaranteed by SCOR. (See below for a full list of rated companies and debt ratings.) All ratings have been placed under review with developing implications. A.M. Best anticipates being able to resolve the under review status of the rating by the end of the year. The rating action follows deterioration in SCOR's risk-adjusted capitalisation as a result of slower than anticipated improvement in performance despite the positive action taken to curtail underwriting in certain areas. Successful completion of SCOR's plans to make capital in a new life subsidiary available to investors and to sell Commercial Risks Partners Limited, Bermuda (CRP C-reactive protein (CRP) A protein present in blood serum in various abnormal states, like inflammation. Mentioned in: Pelvic Inflammatory Disease CRP, n.pr See C-reactive protein. ) are highly likely to result in enhancement of SCOR's consolidated risk-adjusted capitalisation. The company's performance in the first half of 2003 has continued to be affected by adverse development in its reserves for business written prior to 2001 by SCOR Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and losses arising in its credit derivatives Credit Derivative Privately held negotiable bilateral contracts that allow users to manage their exposure to credit risk. Credit derivatives are financial assets like forward contracts, swaps, and options for which the price is driven by the credit risk of economic agents (private portfolio and from CRP. A.M. Best believes that these factors may continue to depress de·press v. 1. To lower in spirits; deject. 2. To cause to drop or sink; lower. 3. To press down. 4. To lessen the activity or force of something. SCOR's future performance. SCOR's rating continues to be underpinned by its excellent business profile and diversified reinsurance account. Expectation: -- Successful enhancement of SCOR's capitalisation as a result of completion of its plans for a new life subsidiary, the possible sale of CRP or other contingency plans A plan involving suitable backups, immediate actions and longer term measures for responding to computer emergencies such as attacks or accidental disasters. Contingency plans are part of business resumption planning. will lead A.M. Best to assess the potential for an upgrade. The ratings of the following companies have been downgraded to B++ (Very Good) from A- (Excellent) and placed under review with developing implications: -- SCOR -- SCOR Canada Reinsurance Company -- SCOR Deutschland Rueckversicherungs AG -- SCOR Italia Riassicurazioni S.p.A -- SCOR Reinsurance Asia-Pacific Pte Ltd PTE LTD Private Limited -- SCOR Reinsurance Company(1) -- SCOR UK Company Ltd -- General Security Indemnity Company -- General Security Indemnity Company of Arizona -- General Security National Insurance Company -- SCOR Life U.S. Re Insurance Company -- SCOR Life Insurance Company -- Investors Insurance Corporation (1) SCOR Reinsurance Company is a U.S. trading company. The following debt ratings have been downgraded to "bbb" from "a-" and placed under review with developing implications: -- five-year convertible bonds -- senior unsecured EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. medium term note program The following debt ratings have been downgraded to "bbb-" from "bbb" and placed under review with developing implications: -- EUR 100 million cumulative subordinated notes, due 2020 -- USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 100 million subordinated step-up notes, due 2029 -- EUR 50 million subordinated perpetual step-up notes issued by Societe d'Etudes et de Placements Financiers and guaranteed by SCOR The following commercial paper rating has been affirmed and placed under review with developing implications: -- AMB-2 rating on EUR commercial paper program A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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