The Standard & Poor's rating services is revising ratings for protection and indemnity (P&I) clubs.
In a report released today, the Marine Mutual Report 2003, the rating agency found that the stable outlook established in 2002 had to be aligned with the negative outlook assigned to the weaker companies.
The revised outlook indicates ratings are likely to decrease across the group during the next three to five years despite the promise of significant, double-digit rate increases for the year ending February 20 2003.
Standard & Poor's credit analyst and author of the report Rowena Potter said: "In just three years, to February 2002, the industry lost in excess of $500 million, representing more than 35% of its combined free reserves. Notably, nearly one-half of the total loss--$230 million--occurred during 2001-2002 alone."
