Standard & Poor's last week assigned its double-'A' finaicial enhancement rating to Zurich-based Allianz Risk Transfer (ART) and its Bermudian and Dugth subsidiaries, Allianz Risk Transfer (Bermuda) Ltd. and Allianz Risk Transfer N.V.

According to an S&P release, this is the first such rating issued to a European multiline insurance company.

The ratings agency also assigned its 'A-1' plus short-term coutnerparty credit rating and its double-'A' long-term counterparty credit rating to ART. The outlook is stable.

"Standard & Poor's financial enhancement rating is an opinion of an insurer's willingness and capacity to make timely payment in respect of insurance policies being used as financial guarantees on Standard & Poor's rated transactions," S&P said.

"ART and its parent, Allianz AG have made representations to Standard & Poors that they understand capital markets expectations that timely payments are essential to protect the integrity of rated transactions, including UK insurance policies written as financial guarantees."

The ratings are supported by "a very strong capital position, solid underwriting and an experienced and focused management team". Partly offsetting these strengths was the relatively short track record of the company, whose operations began in 1997, and teh immaturity of the business.

S&P exects ART's business franchise to develop gradually as steady growth of the alternative risk transfer market continues, aided by hardening insurance rates. Non traditional business volume is expected to grow 30 percent annual, while traditional business should experience more modest growth, the ratings agency said.