NEW YORK (Reuters) — AM Best Co., an insurance company rating agency, placed its ratings of HCC Insurance Holdings Inc. and its affiliates under review yesterday with negative implications, meaning they could be downgraded.A.M. Best cited HCC’s announcement of the results of an investigation of its stock option practices on November 17. The Houston-based specialty insurer had said it would take a pre-tax financial charge and chief executive Stephen Way resigned.

HCC’s shares lost 1.3 percent or 38 cents to $30.10 in New York Stock Exchange trading in afternoon trading yesterday.

A.M. Best said the ratings are likely to remain under review pending HCC’s quarterly filings, which have been delayed. It said it would also look at lawsuits, regulatory penalties, HCC’s independent investigation and the delayed filings in making a determination.

If HCC delayed its federal filings beyond the end of the year, it would be an “event of default”, and holders of its two outstanding debt issues could force HCC to pay back the issues, which total nearly $300 million, the rater said.

AM Best said that while management regarded this as unlikely, it was exploring short-term options.