Moody's: Converium, units negative

Moody's Investors Service said it assigned a negative outlook to the Baa1 insurance financial strength rating of Converium AG and the Baa1 IFSR of Converium Rueckversicherung (Deutschland) AG, as well as to the 8.25% subordinated notes due 2032 issued by Converium Finance SA and guaranteed by Converium AG.

Moody's said that its rating action was taken following the earnings announcement and as a result of the increased likelihood that Converium will take longer than expected to return to sustainable profitability.

The rating agency pointed out that lackluster 2005 renewals, a high expense ratio, ongoing restructuring costs and deteriorating prospects for the next renewals season as a result of weak operating performance are increasing negative pressure on the ratings.

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