Travelers 2004 Annual Report Download - page 37

downgraded the debt ratings of Travelers Property Casualty Corp. and Travelers Insurance Group
Holdings, Inc. to a- from a. Discover Reinsurance Company was assigned an outlook of negative, while
the St. Paul Insurance Group and Travelers PC Pool were assigned outlooks of stable.
• Moody’s affirmed the insurance financial strength ratings of the Travelers Property Casualty Pool
(Aa3), St. Paul Insurance Group (A1) and Gulf Insurance Group (A2). Additionally, Moody’s affirmed
the long-term debt ratings of The St. Paul Travelers Companies, Inc., Travelers Property Casualty Corp.
and Travelers Insurance Group Holdings, Inc. (A3). The outlook for the legacy St. Paul Insurance Group
was assigned an outlook of negative.
• S&P affirmed the counterparty credit and financial strength ratings on members of the St. Paul
Insurance Group, Travelers Property Casualty Pool, Travelers Casualty and Surety Company of
America, Travelers Casualty and Surety Company of Europe, LTD and Gulf Insurance Group (A+).
S&P also affirmed the counterparty credit and senior debt ratings of The St. Paul Travelers Companies,
Inc. (BBB+). A stable outlook was assigned to all the above ratings.
• Fitch downgraded the insurer financial strength rating of the members of the Travelers Property
Casualty Group to AA- from AA. Fitch also assigned the members of The St. Paul Insurance Group the
insurer financial strength rating of AAⳮ. The senior and long-term issuer debt ratings of The St. Paul
Travelers Companies, Inc., Travelers Property Casualty Corp. and Travelers Insurance Group Holdings,
Inc. were affirmed at Aⳮ. All ratings were assigned the outlook of stable.
On September 15, 2004, S&P downgraded its counterparty and financial strength ratings of Afianzadora
Insurgentes, S.A., a majority-owned subsidiary of United States Fidelity and Guaranty Company operating in
Mexico, to BBBⳮfrom BBB+ in the global scale and to mxAA from mxAAA in the national scale. The short-
term financial strength ratings were affirmed at mxA-1+ in the national scale. The ratings were removed from
CreditWatch with an outlook of negative. At the same time, counterparty and financial strength ratings were
withdrawn at the Company’s request.
On January 6, 2005, A.M. Best affirmed the financial strength rating of A of St. Paul Guarantee Insurance
Company and withdrew the financial strength rating of A+ of Travelers Casualty and Surety Company of Canada
(assigned an NR-5, not formerly followed rating). Both ratings were removed from under review with developing
implications. St. Paul Guarantee Insurance Company was assigned a rating outlook of stable. These actions
followed the January 1, 2005 completion of the amalgamation of St. Paul Guarantee Insurance Company and
Travelers Casualty and Surety Company of Canada.
In connection with the Company’s January 31, 2005 announcement of fourth quarter 2004 earnings,
A.M. Best, Moody’s, S&P and Fitch announced the following rating actions with respect to the company.
• A.M. Best: On January 31, 2005, A.M. Best placed the financial strength rating of A+ of Travelers
Property Casualty Pool and the debt ratings of a- on senior debt, bbb+ on subordinated debt, bbb on trust
preferred securities, bbb on preferred stock and AMB-1 on commercial paper of The St. Paul Travelers
Companies, Inc. and its subsidiaries under review with negative implications, pending the close of a
potential divestiture of the Company’s investment in Nuveen Investments. Concurrently, A.M. Best
affirmed the financial strength rating of A of The St. Paul Insurance Group. The rating outlook is stable.
• Moody’s: On February 1, 2005, Moody’s announced that it affirmed the long-term debt ratings (senior
unsecured debt at A3) of The St. Paul Travelers Companies, Inc. and also affirmed the Aa3 insurance
financial strength (IFSR) of the members of the legacy Travelers intercompany pool. The outlook for
these ratings was changed to negative from stable. Moody’s also placed the A1 IFSR of the legacy St.
Paul intercompany pool and the A2 IFSR of United States Fidelity and Guaranty Company on review
for possible upgrade. The outlook on the A2 IFSR of the Gulf intercompany pool subsidiaries was
changed to positive from stable. The outlook of the A1 IFSR of Travelers Casualty and Surety Company
of Europe, Limited was changed to positive from developing.
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