Scottish Re Group Limited Responds to Ratings Actions by Major Agencies

Strategic Insights -

Scottish Re Group Limited has issued a statement responding to ratings actions taken by A.M. Best Co., Fitch Ratings, Moody's Investor Service, and Standard & Poor's Rating Services. The company has reassured its clients, investors, and creditors that it does not face any near-term liquidity or solvency issues, despite the ratings actions. Scottish Re Group Limited has emphasized its ability to meet its obligations, with all regulated entities capitalized well in excess of minimum required levels and available liquidity to meet its $115 million outstanding 4.5% convertible notes.

Key Takeaways:

  • Scottish Re Group Limited has issued a statement in response to ratings actions by A.M. Best Co., Fitch Ratings, Moody's Investor Service, and Standard & Poor's Rating Services.
  • The company has reassured its clients, investors, and creditors that it does not face any near-term liquidity or solvency issues.
  • Scottish Re Group Limited has emphasized its ability to meet its obligations, with all regulated entities capitalized well in excess of minimum required levels.
  • The company has highlighted its available liquidity to meet its $115 million outstanding 4.5% convertible notes, which are puttable to it at par on December 6, 2006.
  • Scottish Re Group Limited has stated that it is not in violation of any covenants associated with its outstanding debt and convertible securities or back-up liquidity lines.
  • The company has made efforts to negotiate new business without ratings triggers and has negotiated such terms out of older treaties.
  • Any treaties with rating triggers represent a de minimus amount of Scottish Re Group Limited's in-force business.

Statistics:

  • $115 million: the outstanding amount of Scottish Re Group Limited's 4.5% convertible notes, which are puttable to the company at par on December 6, 2006.
  • 36: the number of months over which Scottish Re Group Limited has been negotiating new business without ratings triggers.
  • 8.30am EDT: the scheduled time for Scottish Re Group Limited's earnings call on Friday, August 4th.

Sources:

  • Scottish Re Group Limited press statement, dated August 1, 2006.
  • Scottish Re Group Limited Web site, http://www.scottishre.com/.
  • Brunswick Group press release, dated August 1, 2006.