S&P Revises Outlook on Reliance (Europe) to Negative

Following yesterday’s announcement that Candover Investment Plc was pulling out of talks to acquire Reliance National Insurance Co. (Europe) Ltd., a subsidiary of U.S. insurer Reliance Group, Standard & Poor’s revised the Credit Watch placement on its “triple C” long-term counterparty credit and insurer financial strength ratings to negative from developing.

“The longer the company remains under the control of its troubled parent, the more its business position and stand-alone rating profile will decline as brokers and clients progressively retract their support,” said the announcement.