Standard & Poor's said that it placed its `A-' financial strength ratings on Bermuda-based Commercial Risk Reinsurance Co. Ltd. (CRP) and its Vermont-domiciled subsidiary Commercial Risk Re-Insurance Co. on CreditWatch with negative implications pending the sale of the company.

"The CreditWatch follows the announcement on April 1 by CRP's French parent group, SCOR, that it has signed a letter of intent with regard to the disposal of CRP, scheduled to take place before June 30, 2003," S&P said.

S&P said it expected that the sale of the company would result in its financial strength ratings, as they apply to future liabilities incurred by CRP, falling.

"Until the point of disposal, CRP's financial strength ratings remain based on a full and unconditional guarantee issued to it by SCOR," S&P said.

"Although this will not apply to insurance or reinsurance contracts issued by CRP post disposal, SCOR has confirmed to Standard & Poor's that the guarantee will remain unlimited, binding, and in place with regard to such contracts issued before disposal in the event that CRP is unable to honour its commitments related to these in the future."