S&P Revises Lindsey Morden Outlook to Stable from Negative; Affirms ‘B’ Rating

Standard & Poor’s Ratings Services announced that it has revised its outlook on Canada’s Lindsey Morden Group Inc. (LMG) to stable from negative. S&P also said that it has affirmed its”‘B” counterparty credit rating on the company.

“The revised outlook reflects our belief that LMG will be able to generate a level of financial performance commensurate with the current rating,” explained S&P credit analyst Jon Reichert.

S&P also said it believes that with the sale of the U.S. third-party administrator business completed, “ongoing financial results should at least stabilize. Indeed, operating results through the third quarter of 2004 were on par with comparable prior-year period results.”

The rating agency described LMG as a “a global, independent claims service organization, based in Toronto, Canada, that is capable of providing its customers with a comprehensive level of support in the administration and handling of claims. Through its subsidiaries, the company conducts business in Canada, the U.S., the U.K., continental Europe, the Far East, Latin America, and the Middle East. Earnings are derived primarily from the U.K. (46 percent), International (27 percent), European (16 percent), and Canadian (10 percent) business segments.”