S&P: ING subsidiaries on watch

Standard & Poor's said it placed its counterparty credit and insurer financial strength ratings on various insurance subsidiaries of ING Groep NV (A/stable/A-1) on Creditwatch with negative implications.

The Creditwatch placement reflects the material noncash exceptional charges booked by ING during the third quarter of 2010; its heightened concerns around the risk associated with its legacy variable annuity business given the firm's exposure to market risk, namely interest rate risk; and the possibility that the agency said it could decouple the rating of the six U.S. operating companies from each other within its upcoming review.

Declines in interest rates during 2010 have increased risks relating to ING's legacy VA business, particularly in the United States, the agency noted.

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