S&P Lowers Farmers Mutual Ins Co & Rltd Rtgs to 'Bpi'.Business Editors NEW YORK--(BUSINESS WIRE)--March 7, 2003 Standard & Poor's--Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. today said it lowered its counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit and financial strength ratings on Farmers Home Mutual Insurance Co. (Farmers Home) and Pioneer Insurance Co. (MN) (Pioneer) to 'Bpi' from 'BBpi' on March 7, 2003. In addition, the 'Bpi' counterparty credit and financial strength ratings on Western Home Insurance Co. (Western Home) were 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. . "In 2001, Farmers Home Mutual Insurance Co. Group (The Group) had a net loss of $7.2 million, compared with a net loss of $4.1 million in 2000," noted credit analyst Allison MacCullough. She added "The Group's operating performance for the first nine months of 2002 has also been poor, with a net loss of $1.7 million." Ratings with a 'pi' subscript (1) In word processing and scientific notation, a digit or symbol that appears below the line; for example, H2O, the symbol for water. Contrast with superscript. (2) In programming, a method for referencing data in a table. are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. They do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a 'pi' subscript. Ratings with a 'pi' subscript are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a 'pi' subscript are not subject to potential CreditWatch listings. Ratings with a 'pi' subscript generally are not modified with "plus" or "minus" designations. However, such designations may be assigned when the insurer's financial strength rating is constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by sovereign risk Sovereign Risk The risk that a foreign central bank will alter its foreign-exchange regulations thereby significantly reducing or completely nulling the value of foreign-exchange contracts. or the credit quality of a parent company or affiliated group. Copyright 2003, Standard & Poor's Ratings Services |
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