S&P drops Congregational to junk

Standard & Poor's said it lowered the counterparty credit ratings on Congregational & General Insurance plc to BB+ from BBB- and placed the rating on CreditWatch with negative implications.

According to S&P, the downgrade primarily reflects poorer-than-expected underwriting and investment performance, further deterioration of the capital base and management's high financial risk tolerance.

Ratings are constrained by Congregational & General's marginal operating performance, marginal capital adequacy and marginal competitive position, the agency said.

Ratings remain underpinned by robust competitive position within its core, but very small and diminishing, niche commercial property market, S&P noted.

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