Copenhagen Re's long-term counterparty credit and insurer financial strength ratings have been downgraded to B, from BB, on a weak prospective capitalisation, a lack of support from its parent and an impaired business position.
Standard & Poor's (S&P), the ratings agency which carried out the downgrade, said it applied to both Copenhagen Re Limited and Copenhagen Reinsurance UK.
The ratings were also removed from CreditWatch. They had been placed there on 20 September 2001, following the terrorist attacks in the U.S. The outlook is stable.
S&P said Copenhagen Re's weak prospective capitalization was the result of a series of large losses during 2001, including the 11 September attacks in the US.
It added that the company's business position was now impaired, following its closure to new business, and that there appeared to be little prospect of support from its parent, Alm Brand.
The ratings were withdrawn at Copenhagen Re's request. This means the company is no longer subject to continuous surveillance by S&P.
