credit and insurer financial strength ratings on European Specialty Reinsurance (Bermuda) Ltd.

The ratings agency also reaffirmed the same rating for European Specialty Reinsurance (Ireland) Ltd., and European Specialty Ruckversicherung AG, and removed them all from CreditWatch, here they were placed with negative implications on May 12, 2000.

These three companies are core members of the ESG Re Ltd. (ESG) group. The outlook is negative. The ratings were placed on CreditWatch following concerns over continued poor operating results from the first quarter of 2000.

Losses of $10.2 million for the first quarter, announced by ESG on May 11, 2000 are significant relative to the group's capital base. In addition, Standard & Poor's has concerns regarding the company's decision to maintain dividend levels at $0.08 per share--despite reporting losses for the third consecutive quarter.

CONTRACT LOS LEADS TO LOWER RATING BUC Contract loss leads to lower rating On Friday Odyssey Re (Bermuda) had a rating, which is used by investors to tell how the company is doing, lowered after the company lost a contract. The Standard & Poor's counterparty credit and financial strength ratings fell to triple B minus from single A minus.

According to Standard & Poor's, the ratings agency then withdrew these ratings at the company's request, following the decision by Fairfax Financial Holdings Ltd. (Fairfax) to cease writing property and catastrophe business through Odyssey Re Bermuda.

This business will continue to be written through Odyssey America Reinsurance Corp.

HOVERSPEED TO WITHDRAW HOVERCRAFT BUC Hoverspeed to withdraw hovercraft Bermuda-based Sea Containers Ltd. confirmed yesterday that its subsidiary Hoverspeed Ltd. will `reluctantly' have to withdraw its two 32 year old hovercraft on the Dover to Calais route and replace them with two SeaCats which have 50 percent more capacity.

The company said crossing times would not be significantly changed in that the hovercraft take 35 minutes while the SeaCats take 45 minutes. President of Sea Containers Ltd., James Sherwood, said two factors have dictated the decision to replace the hovercraft with SeaCats. First, the market has changed since the loss of on-board duty free.