Moody's puts SCOR on review

Moody's Investors Service said it has placed France reinsurer SCOR's ratings (senior debt rating of Baa3; subordinated debt rating of Ba2) on review for possible downgrade.

The rating action follows the company's recent announcement of a loss of €349 million and a reduction in its shareholders' equity from €1.070 billion at Dec. 31, 2002 to €629 million for the nine months ended Sept. 30, 2003.

Moody's notes that while SCOR's new business written in 2002-2003 is profitable, the company's result has been impacted by further reserve strengthening for its 1997-2001 U.S. business and also for its Commercial Risk Partners (CRP) subsidiary.

SCOR has also announced a €600 million rights issue to bolster its capital base. Moody's said that its review will focus, in particular, on the prospects for the successful completion and timing of the rights issue, as well as the potential for further adverse reserve development.

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