S&P puts Scottish Re on watch

Standard & Poor's said it placed its BBB- counterparty credit rating on Scottish Re Group Ltd. on CreditWatch with negative implications.

At the same time, S&P said it placed its various ratings on Scottish Re's operating subsidiaries and other related entities on CreditWatch negative.

The agency noted that these rating actions follow the announcement by the company earlier today of an expected net operating loss of $130 million for the quarter ended June 30.

The announced loss for the second quarter as well as the low earnings experienced in the first quarter resulted from the company's very rapid acquisition pace over the past few years, which in turn led to operational weaknesses and the need for revision of the assumptions that underlie financial results, S&P said.

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