Moody's confirms Loews ratings

Moody's Investors Service said it confirmed the ratings of Loews Corp., including the Baa1 senior unsecured rating and Baa2 senior subordinated rating.

The outlook is negative.

Moody's said the confirmation is based on the expectation that Loews should not have to contribute additional long-term or permanent support to CNA over the intermediate term, and on the strengthening of Loews' liquidity thanks to a recent equity offering in its cigarette business.

In November 2003, Loews initiated a recapitalization plan to support its CNA insurance subsidiary, of which it controls 90%. Under this plan, the company committed to purchase $750 million in CNA preferred shares and to provide additional support of up to $500 million, in the event that certain additions to the statutory capital of Continental Casualty Co., CNA's main insurance subsidiary, were not achieved by Feb. 26, 2004. In addition, Loews has committed to provide up to an additional $150 million by March 31, 2004 in the event of additional shortfalls in relation to business or asset sales.

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