S&P ups SCOR ratings

Standard & Poor's said it raised its long-term counterparty credit and insurer financial strength ratings on France-based reinsurer SCOR and subsidiaries to BBB+ from BBB- and its short-term counterparty credit and commercial paper ratings on SCOR to A-2 from A-3.

The outlook on all group entities is stable.

"The rating actions reflect SCOR's announcement of an increased and fully underwritten €750 million rights issue, together with evidence of a robust business position within core markets," said S&P credit analyst Marcus Rivaldi.

S&P said it expects that SCOR will continue to endeavor to commute portfolios at its CRP subgroup (comprising Bermuda-based Commercial Risk Reinsurance Co. Ltd. and its U.S.-based subsidiary Commercial Risk Re-Insurance Co.) and significantly reduce its exposure to its substantial credit derivatives run-off portfolio.

The stable outlook reflects S&P's expectation that SCOR's business position will remain robust within its core markets, although the aggregate level of group premium income underwritten in 2004 will materially decline as SCOR withdraws from noncore markets. Furthermore, SCOR's good prospective capital adequacy position will remain resilient to further reserve developments.

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