S&P: GIO General Affirmed, GIO Holdings Downgraded.MELBOURNE, Australia--(BUSINESS WIRE)--Standard & Poor's-- Oct. 21, 1999--Standard & Poor's today affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its single-'A'-plus ratings on GIO GIO Giovedì (Italian: Thursday) GIO Government Information Office GIO Geographic Information Officer GIO General Insurance Ombudservice GIO Government Information Online GIO Government Insurance Office General Ltd. and GIO General New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. Ltd., and downgraded its ratings on GIO Australia Holdings Ltd. and GIO Insurance Ltd. to triple-'B' from triple-'B'-plus (see list below). At the same time, the ratings were removed from CreditWatch with negative implications where they were placed on Aug. 17, 1999. The outlook is stable. The short-term ratings on GIO Australia Holdings Ltd. are downgraded to 'A-3' from 'A-2'. The counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit ratings on GIO Finance Ltd. are downgraded to triple-'B'/Stable/'A-3'. The short-term rating on GIO Finance's A$500 million domestic CP program remains at 'A-2', however, the CreditWatch is revised to positive on the undertaking from AMP Group Holdings Ltd. that it is to provide explicit support for this program. The rating actions are based on a review of the principal ongoing GIO group entities and the assessed adequacy of reserves and capital of the group's 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. operations -- now in run-off. GIO General is now the group's principal operating and underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. entity focussed on general insurance in Australia Australia has a sophisticated and well developed insurance market. Types of insurance Life insurance Life insurance products sold in Australia include Term life insurance, Disability Income insurance. . The affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. reflects its strong business position, good solvency, and adequate earnings profile, and it is viewed as a strategically important subsidiary of the AMP group. The ratings downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. on GIO Holdings reflects the impact of losses booked to date, coupled with uncertainty surrounding the adequacy of reserves and capital for the run-off of the reinsurance operation. In the wake of the A$743 million net losses for the year ended June 30, 1999, (which resulted in a two-notch downgrade and placement on CreditWatch negative) GIO Insurance has ceased writing new reinsurance business and will run its existing book off. GIO Insurance benefits from a guarantee from GIO Holdings, which underpins its rating of triple-'B'. Under a scheme of arrangement proposed by the GIO group, the AMP group has agreed to acquire 100% ownership of the GIO group and inject in·ject v. 1. To introduce a substance, such as a drug or vaccine, into a body part. 2. To treat by means of injection. capital into the group to support its operations and the reinsurance run off. This support is factored into the ratings assigned. Any further restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). post acquisition by the AMP group or the GIO group will be reviewed at the time for potential rating impact, Standard & Poor's said.--CreditWire
RATINGS DOWNGRADED AND REMOVED FROM CREDITWATCH RATING
To From
GIO Australia Holdings Ltd.
Counterparty credit rtgs
Local currency BBB/Stable/A-3 BBB+/WatchNeg/A-2
GIO Insurance Ltd.(1)
Counterparty credit rtgs
Local currency BBB/Stable BBB+/WatchNeg
Insurer fincl strength rtg BBB BBB+/WatchNeg
GIO Insurance Ltd.(1) (New Zealand Branch)
Insurer fincl strength rtg BBB BBB+/WatchNeg
GIO Finance Ltd.(1)
Counterparty credit rtgs
Local currency BBB/Stable/A-3 BBB+/WatchNeg/A-2
RATINGS DOWNGRADED
GIO Personal Investment Services Ltd.
Counterparty credit rtgs
Local currency BBBpi BBB+pi
Insurer fincl strength rtg BBBpi BBB+pi
GIO (UK) Ltd.
Counterparty credit rtgs
Local currency BBBpi BBB+pi
Insurer fincl strength rtg BBBpi BBB+pi
RATINGS REMAINING ON CREDITWATCH
GIO Finance Ltd.(1)
A$500 million domestic CP A-2/WatchPos A-2/WatchNeg
RATINGS AFFIRMED AND REMOVED FROM CREDITWATCH
GIO General Ltd.(1)
Counterparty credit rtg
Local currency A+/Stable
Insurer fincl strength rtg A+
GIO General New Zealand Ltd.(2)
Counterparty credit rtgs
Local currency A+/Stable
Insurer fincl strength rtg A+
RATINGS UNCHANGED
AA-GIO Insurance Ltd.
Counterparty credit rtgs
Local currency A-/Stable
Insurer fincl strength rtg A-
(1) Guaranteed by GIO Australia Holdings Ltd.
(2) Guaranteed by GIO General Ltd.
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