S&P puts Sirius on watch

S&P said it placed its A- ratings on the core operating subsidiaries of Sirius International Group Ltd. on CreditWatch with negative implications. The agency also placed its BBB rating on holding company Sirius International Group on CreditWatch negative. In addition, S&P placed its ratings on Sirius' senior and subordinated debt instruments on CreditWatch with negative implications.

The CreditWatch placements follow the announcement that majority shareholder CM Bermuda Ltd. is attempting to prevent Sirius from approving a share issuance without first getting approval from 75% of its shareholders.

“We think the request for consent follows a divergence of views between Sirius' management and its majority shareholder, CMB, over the group's future capital strategy,” said S&P in a press release.

S&P said it intends to resolve the CreditWatch placement once it understands how both Sirius and its majority shareholder intend to proceed with regards to the share issuance. “We think this should become clearer within 90 days,” the agency said.

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