S&P: Scottish Re on positive watch

Standard & Poor's said it revised the CreditWatch status of its ratings on Scottish Re Group Ltd., Scottish Re's operating companies and dependent unwrapped securitized deals to positive from negative.

According to S&P, Scottish Re has a CCC counterparty credit rating and Scottish Re's operating companies have B+ counterparty credit and financial strength ratings.

These ratings were placed on CreditWatch negative on July 31, 2006, when Scottish Re announced poor second-quarter results and that liquidity was tight, the agency said, noting that the revision of the CreditWatch status to positive follows two announcements made by Scottish Re.

Scottish Re announced in a press release that it had reached an agreement with Mass Mutual Capital Partners LLC and affiliates of Cerberus Capital Management LP related to a planned equity infusion of $300 million by each in the second quarter of 2007, assuming regulatory and shareholder approval, the agency said.

S&P noted that Scottish Re also stated that it had brought down the outstanding letters of credit under its bank credit facility to less than $5 million and had negotiated a backup facility for letters of credit for the remainder.

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