A.M. Best Affirms and Withdraws Ratings of Scottish Re Group

Sunday, Jun 14,2009, 12:11:05 AM Click:

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating (FSR) of D (Poor) and issuer credit rating (ICR) of "c" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands) (Other OTC: SKRRF). Subsequently, at the request of Scottish Re, A.M. Best has withdrawn the ratings and assigned a category NR-4 to the FSR and an "nr" to the ICR. Concurrently, the ICR of "c" and all debt ratings of Scottish Re have been affirmed, subsequently withdrawn and assigned an "nr."

A.M. Best believes Scottish Re continues to be affected by the adverse credit and equity market conditions, which is believed to have weakened the value of underlying collateral used to secure a portion of Scottish Re and its subsidiaries' life reinsurance obligations and statutory reserves for its operating companies. A.M. Best remains concerned with the limited information available with respect to Scottish Re's financial strength position and diminishing business prospects going forward.

The FSR of D (Poor) and ICR of "c" have been affirmed and withdrawn, and an NR-4 has been assigned to the FSR and an "nr" to ICR of the following primary operating subsidiaries of Scottish Re Group Limited:

Scottish Annuity & Life Insurance Company (Cayman) Ltd.
Scottish Re Life Corporation
Orkney Re, Inc.

The ICR of "c" of Scottish Re Group Limited has been affirmed, withdrawn and assigned an "nr."

The following debt ratings have been affirmed, withdrawn and assigned an "nr":

Scottish Re Group Limited"”

-- "d" on $125 million non-cumulative preferred shares

Stingray Pass-Though Trust"”

-- "c" on $325 million 5.902% senior secured pass-through certificates, due 2012

The following indicative debt ratings have been affirmed, withdrawn and assigned an "nr":

Scottish Re Group Limited"”

-- "c" on senior unsecured debt

-- "c" on subordinated debt

-- "c" on preferred stock

Scottish Re Holdings Stat Trust (II & III)

-- "c" on preferred securities

The FSR of E (Under Regulatory Supervision) and ICR of "rs" of Scottish Re (U.S.), Inc. remain unchanged.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.

Analysts

Marc Steinberg, 908-439-2200, ext. 5225

marc.steinberg@ambest.com

or

William Pargeans, 908-439-2200, ext. 5359

william.pargeans@ambest.com

or

Public Relations

Jim Peavy, 908-439-2200, ext. 5644

james.peavy@ambest.com

or

Rachelle Morrow, 908-439-2200, ext. 5378

rachelle.morrow@ambest.com

Source: A.M. Best Co.