S&P Places Zurich Re Centre Hldgs 'A' Rtg on WatchNeg.Business Editors NEW YORK--(BUSINESS WIRE)--Standard & Poor's March 28, 2001--Standard & Poor's today placed its single-'A' senior debt rating on Zurich 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. Centre Holdings Inc. (ZRCH) on CreditWatch with negative implications. This action follows the recent announcement by the Zurich Financial Services Zurich Financial Services Group is a major financial services group based in Zurich, Switzerland. Global operations North America The US consumer market is served primarily by Farmers Insurance Group the third largest personal lines property & casualty insurance (ZFS (1) (Zettabyte File System) A distributed file system from Sun that was added to OpenSolaris in 2005 and Solaris 10 in 2006. With support for 128 bits, compared to 64 for NTFS and other contemporary file systems, storage capacity is unlimited for all practical ) group of companies that some reinsurance units are to be demerged from the rest of the group. The affected units are Zurich Re (Zurich), which is a division of Zurich Insurance Co. (double-'A'-plus counterparty credit rating with a stable outlook) in Switzerland; Zurich Ruckversicherung (Koln) AG; and Zurich Reinsurance (North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ) Inc. (ZRNA). ZRNA, which provides debt service for ZRCH, currently benefits from the implied support of ZFS and was viewed as being strategically important to the group. As a result, the CreditWatch placement of the ZRCH rating suggests the potential lowering of the ratings on ZRNA because of the eventual withdrawal of ongoing support from the group Uncertainty remains regarding whether ZFS will assume the outstanding senior debt of ZRCH prior to the demerger demerger n (Comm) → Abspaltung f, Demerger m or if ZRNA will continue to service that ZRCH's debt obligations. Standard & Poor's will discuss this issue as well as the prospective business plan and operational strategy of the demerged entities with ZFS management in the near term.---CreditWire. |
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