S&P Affirms Steamship P&I London ‘A-‘ Ratings

November 29, 2004

Standard & Poor’s Ratings Services announced that it has affirmed its “A-” counterparty credit and insurer financial strength ratings on The Standard Steamship Owners’ P&I Association (London) Ltd. (SL or the club) with a stable outlook.

“The ratings on The Standard Steamship Owners’ P&I Association (London) Ltd. are based on its membership of the Standard family of clubs, which includes SL’s larger sister, The Standard Steamship Owners’ P&I Association (Bermuda) Ltd.; strong capitalization; good operating performance; and good competitive position,” stated S&P credit analyst Lucy Stupples.

S&P noted that offsetting these positive factors “are SL’s modest size and its limited, albeit good, financial flexibility (being the balance between capital requirements and sources).”

Stupples added: “The stable outlook reflects Standard & Poor’s expectation that capitalization will remain strong. The capital adequacy ratio is expected to remain extremely strong and more than supportive of the rating.”

S&P also noted: “Operating performance is expected to remain strong, with the combined ratio being maintained below 100 percent over the medium term. The club’s bottom-line results should stabilize as investment results return to a more sustainable level.

“The club will not be announcing a general increase at February 2005 renewal, choosing instead to selectively re-rate its business on a case-by-case basis. Competitive position should remain good as the club continues to diversify more into European coastal operators while retaining its commitment to inland waterways.”

Was this article valuable?

Here are more articles you may enjoy.