One-time Bermuda insurance star Centre Solutions Ltd. realised a net loss of $432 million including reserve charges of $485 million through the third quarter of 2003, Standard & Poors reported yesterday.

And it said the Bermuda-based Zurich Financial Services unit took a net loss of $625 million, wiping out cumulative retained earnings at the beginning of 2002.

As a result, S&P has downgraded Centre?s the company?s counterparty credit and financial strength ratings and related operating companies to ?A-? from ?A+?.

It also put these ratings on ?developing? credit watch status, from negative meaning ratings are under watch and could either be raised or lowered.

The agency added that ?the commitment of Zurich Financial Services to Centre?s already much reduced business is uncertain because large parts of the business are in run-off?.

S&P credit analyst Karole Dill Barkley said: ?The ratings will be removed from credit watch and affirmed or raised following the execution of explicit parental support (from Zurich Financial Services) which is expected over the next month,? but she warned ?if the agreement is not executed, the ratings could be lowered again.?