S&P keeps Swiss Re on negative watch

Standard & Poor's said the AA long-term counterparty credit and senior unsecured debt rating and A+ junior subordinated debt ratings of Swiss Reinsurance Co. and its core operating companies remain on CreditWatch with negative implications following Swiss Re's announcement that it had reached an agreement with General Electric Co. to acquire the latter's reinsurance operations, GE Insurance Solutions Corp. (BBB+/positive watch).

S&P said the CreditWatch status reflects the execution risk associated with integrating a group of the size and complexity of lower-rated GE Insurance Solutions, the ratings of which reflect the state of flux that it has been in for a number of years due uncertainty over the long-term ownership of the group.

These risks are partly offset, however, by Swiss Re's track record of successful transatlantic acquisitions and the advanced integration planning already in place, the agency said.

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