S&P: Scottish Re stable

Standard & Poor's said it revised its outlook on Scottish Re Group Ltd. and its subsidiaries to stable from positive and affirmed its BBB- counterparty credit rating on Scottish Re Group Ltd. and its A- counterparty credit and financial strength ratings on the subsidiaries following Scottish Re's announcement of its agreement to acquire the U.S. individual life reinsurance business of ING Groep NV.

"The acquisition will significantly increase Scottish Re's scale, giving it a top-three market share in U.S. life reinsurance, and potentially improve diversification of risk and reduce unit expenses," observed S&P credit analyst Rodney Clark.

However, given the large scale, S&P said the acquisition also brings potential execution risk relative to the necessary additions to infrastructure and the challenges of systems and administrative integration with Scottish Re's existing business.

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