Fitch Downgrades Scottish Re's Ratings; Remains on Watch Negative.CHICAGO -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has downgraded Scottish Re's (NYSE NYSE See: New York Stock Exchange :SCT Sacrococcygeal teratoma (SCT) A tumor occurring at the base of the fetus's tailbone. Mentioned in: Prenatal Surgery ) ratings as follows: Scottish Re Group Ltd. --Issuer default rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. 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. ) to 'BBB-' from 'BBB'. Operating subsidiaries: --Insurer financial strength (IFS) to 'BBB+' from 'A-' All ratings remain on Rating Watch Negative. For a complete listing of all ratings see the bottom of this page. The ratings action reflect Fitch's heightened concern over the increased stress placed on financial flexibility of the holding company following SCT's announcements yesterday. The announced writedown of the deferred tax asset by $112 million, as well as the impact on new business production of subsequent rating downgrades, are expected to further pressure the company's earnings performance going forward. Fitch believes that the company has adequate liquidity over the near term and its capital position, as measured by risk adjusted capital is within ratings expectations. Progress on strategic initiatives undertaken will be reflected as they materialize and execution of plans with regard to potential capital sources would help to alleviate ratings pressure. The following ratings remain on Rating Watch Negative: Scottish Annuity & Life Insurance Company (Cayman) Limited --IFS downgraded to 'BBB+' from 'A-'. Scottish Re (U.S.) Inc. --IFS downgraded to 'BBB+' from 'A-'. Scottish Re Limited --IFS downgraded to 'BBB+' from 'A-'. Scottish Re Group Limited --IDR downgraded to 'BBB-' from 'BBB'; --4.5% 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. $115 million senior convertible notes downgraded to 'BB+' from 'BBB-'; --5.875% USD$142 million hybrid capital units downgraded to 'BB' from 'BB+'; --7.25% USD$125 million non-cumulative perpetual preferred stock downgraded to 'BB' from 'BB+'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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