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Strategies & Market Trends : Contrarian Investing -- Ignore unavailable to you. Want to Upgrade?

To: pcyhuang who wrote (735)	11/14/2006 9:24:52 AM
From: richardred	Read Replies (1) \| Respond to of 4080

This part concerns me. Status of Credit and Financial Strength Rating Following the announcement of our second quarter results, the various rating agencies downgraded our insurer financial strength ratings. Our current insurer financial strength ratings are as follows: Moody's A.M. Best Investors Standard Company Fitch Ratings Service & Poor's --------------- ------------------ --------------- ---------------- As at As at As at As at As at As at As at As at June November June November June November June November 30, 8, 30, 8, 30, 8, 30, 8, 2006 2006 2006 2006 2006 2006 2006 2006 ----- --------- ----- ---------- ----- -------- ------ -------- Insurer Financial Strength Ratings: Scottish Annuity and Life Insurance A- B+* A BBB** A3* Baa3* A- BBB- Company (Cayman) Ltd Scottish Re (U.S.), Inc A- B+* A BBB** A3* Baa3* A- BBB- Scottish Re Ltd A- B+* A BBB - - A- BBB- Scottish Re Life Corporation A- B+* - - - - A- BBB-** * Under review with negative implications Negative watch * Ratings under review, direction uncertain Some of our ratings are on negative outlook, which highlights the respective rating agencies' diminished confidence that there will not be further adverse developments over the near to medium term. In addition, the rating agencies have noted that our financial flexibility and competitive position have deteriorated and they have concerns about our ability to raise equity financing to support our ongoing capital and liquidity needs. Finally, the rating agencies have expressed concern over our ability to maintain a flow of new business which may reduce our future earnings growth.