Enhance Fin Svcs Grp's Outlk Changed to Dev, S&P Says.Business Editors NEW YORK--(BUSINESS WIRE)--Standard & Poor's May 9, 2000-- Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index today affirmed its single-'A'-plus rating on Enhance Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Group Inc. (Enhance Financial) and changed the outlook from stable to developing. "The affirmation is based on the operating performance and dividend capabilities of its main operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , triple-'A' rated Enhance 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 (Enhance Re)," said David Veno, Director in Standard & Poor's Bond Insurance Ratings Group. Although Enhance Financial relies heavily on Enhance Re's dividend capabilities, continuing a strategy that began in 1997, Asset Guaranty Insurance Co. (Asset Guaranty, double-'A' rated) also upstreamed dividends in 1999 to support the holding company. With regard to the legal action pending against Enhance Financial and Asset Guaranty, Standard & Poor's is not in the position to opine on the merits on the merits adj. referring to a judgment, decision or ruling of a court based upon the facts presented in evidence and the law applied to that evidence. A judge decides a case "on the merits" when he/she bases the decision on the fundamental issues and considers of the case or predict an outcome. But, a judgement against the companies would represent a severe financial strain and could jeopardize the their ratings as well as Enhance Re's rating. Enhance Re and Asset Guaranty are financially sound and have sufficient projected dividend capacity to meet Enhance Financial's debt service and shareholder dividend needs. A sale of the company to a higher rated entity could lead to an upgrade in Enhance Financial's rating. However, continued poor operating performance at Singer Asset Finance Company and some less-than-wholly owned subsidiaries, growing capital needs of C-BASS C-BASS Credit-Based Asset Servicing and Securitization , the possible sale of the company either in whole or in part, and the pending legal action results in a developing outlook, Standard and Poor's said.---CreditWire |
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