S&P keeps Transatlantic on watch

Standard & Poor's said it is keeping its A- counterparty credit rating on Transatlantic Holdings Inc. on CreditWatch with negative implications, where it was placed on Sept. 29.

The ratings remain on CreditWatch because of S&P's view that Transatlantic's operating results over the last five years have been lower than expected. In addition, the agency said it has concerns that the uncertainty surrounding American International Group, Inc.'s majority ownership of Transatlantic has reduced its financial flexibility and could have a moderately negative impact on the group's competitive position over the coming year.

The ratings on Transatlantic are based on the group's well-diversified mix of business, strong reputation with brokers and clients, strong and disciplined underwriting culture, strong capital adequacy and very strong liquidity, the agency said.

Partially offsetting these strengths are the company's inability to translate its strong competitive position into stronger, peer-leading operating performance over the past five years, S&P said.

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