Standard & Poor's on Friday said that it had affirmed its ratings on Centre Solutions (Bermuda) Ltd. and related operating companies (collectively referred to as Centre).

These included its single-'A'-plus counterparty credit and financial strength ratings on Centre Solutions (Bermuda) Ltd.

Standard & Poor's, which has removed its CreditWatch on Centre Solutions, also said that the outlook on these companies was negative.

The rating action follows Zurich Financial Services's (ZFS) announcement that the group's earnings had deteriorated.

Subsequent to the announcement, ZFS issued a rights offering (raising $2.5 billion in capital), which was successfully executed and authorised by the shareholders on October 11, 2002.

"The counterparty credit and financial strength ratings on Centre are primarily driven by its stand-alone superior capitalisation, strong operating performance, and solid business position as well as its strong management team," said Standard & Poor's credit analyst Grace Osborne.

The single-'A'-plus financial enhancement ratings on Centre Solutions (Bermuda) Ltd., ZC Specialty Insurance Co., Centre Solutions (U.S.) Ltd., Centre Insurance International Co., and Centre Solutions (Asia) Ltd. reflect management's willingness and capacity to meet its financial commitments on a timely basis said Standard & Poor's.

The outlook on Centre is constrained by the outlook on ZFS, which might be revised upon the satisfactory completion of the group's operational improvement programme.

This programme has the potential to significantly enhance the group's earnings beginning in 2003.