Standard & Poor's has placed its “BBB+” long-term counterparty credit and insurer financial strength ratings on Converium AG on CreditWatch with positive implications.
At the same time, it has placed its “BB+” long-term counterparty credit rating on US-based holding
company Converium Holdings (North America) on CreditWatch
positive.
S&P's said the creditwatch placement reflects the Converium group's announcement on 17 October that it has signed a definitive agreement to sell its North American operations to US-based National Indemnity.
S&P believes the transaction will enable Converium to achieve a clean-cut sale to a reputable buyer whose new ownership does not disadvantage policy- or debtholders.
It is subject to regulatory approvals and customary closing conditions.
The creditwatch listing also reflects the rating agency's belief that there is now a higher probability that Converium will in the short term successfully settle with regulators in respect of transactions subject to regulatory
inquiries at a cost that is not material.
When the achievement of such a settlement becomes certain, S&P said it will raise its ratings on Converium AG and its guaranteed operating entities to “A-” and remove the ratings from CreditWatch.
