Standard & Poor’s Ratings Services has lowered the ratings it has assigned to a life reinsurer.
S&P, New York, says it has lowered the counterparty crediting on Scottish Re Group Ltd., Hamilton, Bermuda, to CCC minus, and the counterparty credit and financial strength ratings on the Scottish Re operating companies to B minus, from BB.
S&P says it has lowered the ratings on the companies’ dependent unwrapped securitized deals by 4 notches.
Scottish Re has reduced its exposure to loss of reserve credits secured through XXX securitizations, but there still are concerns about the company’s exposure to investments in residential mortgage-backed securities investments, S&P analysts say.