CNA Lowered, on Negative Watch

S&P lowered its ratings on CNA Financial Corp., the members of the Continental Casualty Intercompany Pool, Continental Assurance Co., Valley Forge Life Insurance Co., CNA Insurance Co. (Europe) Ltd., and Maritime Ins. Co. S&P’s lowered select CNA ratings because of its ongoing restructuring efforts to improve the financial and competitive position of the franchise, which will continue to be challenged by internal and external issues.

The ratings on Continental Corp. and members of Continental Insurance Intercompany Pool (CIC) are unaffected by the action because of CIC’s above-average capitalization and the implicit support from its ultimate parent, CNA. The ratings will remain on CreditWatch with negative implications until S&P’s is able to review the company’s potential exposure to losses related to the World Trade Center disaster and its impact to the company’s capital adequacy.