International ratings agency Fitch has downgraded French insurer SCOR as a result of the company's recently reported loss estimates for the year to 31 December 2001.
Fitch downgraded SCOR's insurer financial strength ratings to AA-minus from AA. It also lowered SCOR's long-term and short-term debt ratings to A-plus and F1, respectively.
All the ratings were removed from Rating Watch Negative and placed on Negative Outlook.
On 15 January 2002, SCOR said it expected its losses for 2001 to hit €250m (£154.3m) after large losses in the fourth quarter.
It said it had received claims in December totalling more than the combined claims for the first nine months of the year. These included losses arising from the 11 September terrorist attacks on the US.
It said overall costs associated with the World Trade Centre disaster were still in line with its original projections of $150m (£140.5m) to $200m (£139.3m).
The company's full year results are due out in March.
Fitch said the group's earnings were not consistent with an AA rating. It added that the Negative Outlook on the ratings reflected concern about the group's ability to raise capital in the short-term.
"(This) may challenge its ability to participate fully in the rapidly improved conditions now prevalent in the reinsurance market," Fitch said.
