The credit ratings agency lowered its insurer financial strength rating to A from A+ and placed the Lloyd's market on creditwatch with negative implications.
Standard & Poor's has downgraded Lloyd's.
The credit ratings agency lowered its insurer financial strength rating to A from A+ and placed the Lloyd's market on creditwatch with negative implications.
Standard & Poor's said in a statement: “These changes were made in conjunction with other rating changes and creditwatch actions taken following the catastrophic losses in the US on September 11, 2001. At single A, the rating remains at a level that Standard & Poor's characterises as ‘strong' financial strength.”
Fellow ratings agency Fitch downgraded the Lloyd's market on Friday (21).
Standard & Poor's predicted losses from the terrorist attacks in the US would be greater than the $20bn (£14bn) total caused by Hurricane Andrew in 1992, previously the most expensive disaster in history.
It also predicted the strain of meeting huge claims could cause longer term damage to the Lloyd's market. It said: “The scale of the cash calls to be made may result in the market's capacity to write new business being lowered into 2002 and limiting the market's ability to prosper from the very much harder insurance market environment expected after the events of September 11.”
