S&P: Primus Guaranty unaffected

Standard & Poor's said its BBB+ long-term counterparty credit rating on Primus Guaranty Ltd. will not be affected by Primus' announcement of a significant sequential swing in unrealized losses of its portfolio of credit default swaps to a negative $119 million from $12 million for the third quarter.

Cash flow measures remain adequate for the rating, the agency said. The unrealized losses do not have a cash effect on the holding company, which continues to maintain sufficient cash to meet expectations for liquidity at the parent company, S&P said. The 10 times annual debt-service coverage requirement of $19 million remains satisfied, the agency said.

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