Fitch cuts Kerr-McGee outlook

Fitch Ratings affirmed Kerr-McGee's ratings but revised the outlook to negative from stable.

The outlook is based on reduced production forecasts, disappointing reserve replacement results and high leverage relative to reserves, Fitch said.

The ratings (senior unsecured BBB) are based on the size and quality of Kerr-McGee's reserves, meaningful titanium dioxide operations and a modest credit profile.

Despite progress made at balance sheet repair, Fitch said it is concerned about a disappointing reserve replacement report and a less robust production profile in 2003.

In addition, Fitch also believes Kerr-McGee's debt relative to the size of its reserves is somewhat aggressive.

Currently, Kerr-McGee's debt/boe ratio is about $3.30 and the debt/proved developed boe is about $5.79. Both of these ratios are high for its rating.

S&P puts Corus on watch

Standard & Poor's put Corus Group plc on CreditWatch with negative implications including its €2.4 billion bank loan and €307 million 3% notes due 2007 at BB and Corus Finance plc's €400 million 5.375% bonds due 2006 and £200 million 6.75% bonds due 2008 at BB.

S&P said the watch placement reflects Corus' continuing difficulty in implementing the disposal of its Dutch aluminum assets to Pechiney SA as well as other unresolved issues.

If the outcome of these issues is negative, then the ratings on the group could be lowered by one or more notches, S&P added.

The disposal, which was factored into the current ratings, forms part of Corus' strategy to focus its efforts on turning around its U.K. steel operations, which have been heavily loss-making for several years. It was expected that the disposal proceeds would be used to repay debt in order to give Corus additional time to carry out its restructuring plans in the U.K., S&P noted.

S&P withdraws Agnico-Eagle ratings

Standard & Poor's withdrew its ratings on Agnico-Eagle Ltd. at the company's request.

Moody's cuts some SCOR ratings

Moody's Investors Service downgrade some ratings of SCOR including cutting its subordinated debt to Ba2 from Ba1. The senior debt was confirmed at Baa3. The outlook is negative. The action concludes a review begun on Nov. 8 when Moody's downgraded SCOR's ratings to their current levels and kept the ratings on review with direction uncertain pending clarity on the amount, timing and success of the prospective rights issue.

In addition, Moody's cited concerns regarding the potential for additional adverse reserve deterioration, other signs of poor risk management and controls, and underwriting losses.

Moody's said the latest downgrade of SCOR's insurance financial strength and subordinated debt reflects its opinion that SCOR faces significant execution challenges in the comprehensive implementation of its "Back on Track" Plan, including the strengthening of its risk management, internal controls, underwriting, and corporate governance.

Moody's believes that this process will be multi-year. As such, Moody's regards 2003 as a transitional year for the company and one that is likely to be pivotal in its recovery.

SCOR's currently high financial leverage relative to its tangible equity was also a major factor in the downgrade. The rating agency regards SCOR's current level of debt (€854 million as of Sept. 30, 2002, as per its French GAAP statements) as significant given its estimated capital base of €1.4 billion, including the proceeds of the rights issue and minority interests.

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