S&P puts Primus Financial on watch

Standard & Poor's said it placed the ratings of Primus Financial Products LLC on CreditWatch with negative implications, including AAA issuer credit and senior debt ratings, AA senior subordinated debt rating and A preferred shares.

The agency said the rating action reflects the potential losses associated with Primus' exposure to Freddie Mac, Fannie Mae, Lehman Brothers Holdings Inc. and Washington Mutual Inc. Primus has said it has about $820 million in capital to pay on its potential credit derivative obligations.

As Primus absorbs the losses associated with these entities in its credit derivative portfolio, S&P said it may lower the company's ratings.

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