S&P Puts Commercial Guaranty Assurance Ltd. on Watch Negative

Apr 25, 2001, 01:00 ET from Standard & Poor's

    TORONTO, April 25 /PRNewswire/ -- Standard & Poor's today placed the
 triple-'A' rating assigned by the Canadian Bond Rating Service (CBRS) on
 Commercial Guaranty Assurance Ltd. on the CBRS Credit Watch List with negative
 implications.  A harmonized Standard & Poor's rating is expected to be
 announced with the CreditWatch resolution.
     On Oct. 31, 2000, Standard & Poor's and CBRS announced that they have
 combined operations in Canada. Standard & Poor's and CBRS will continue to
 work together to harmonize all outstanding CBRS ratings with those of
 Standard & Poor's.
     The CBRS Credit Watch List placement reflects Commercial Guaranty's
 failure to find an investor to inject a significant amount of needed capital.
 Further, the financial insurance provider has not been writing new business
 since last year.  The ongoing, prolonged financial uncertainty about
 Commercial Guaranty puts further stress on the company and has prompted its
 auditors to question its ability to continue as a going concern.
     Standard & Poor's will assess Commercial Guaranty's operating and capital
 plans, as well as its capital structure in the context of Standard & Poor's
 minimum capital requirements and general ratings criteria.  The impact of any
 new investor capital will be evaluated if and when it occurs.
 
 

SOURCE Standard & Poor's
    TORONTO, April 25 /PRNewswire/ -- Standard & Poor's today placed the
 triple-'A' rating assigned by the Canadian Bond Rating Service (CBRS) on
 Commercial Guaranty Assurance Ltd. on the CBRS Credit Watch List with negative
 implications.  A harmonized Standard & Poor's rating is expected to be
 announced with the CreditWatch resolution.
     On Oct. 31, 2000, Standard & Poor's and CBRS announced that they have
 combined operations in Canada. Standard & Poor's and CBRS will continue to
 work together to harmonize all outstanding CBRS ratings with those of
 Standard & Poor's.
     The CBRS Credit Watch List placement reflects Commercial Guaranty's
 failure to find an investor to inject a significant amount of needed capital.
 Further, the financial insurance provider has not been writing new business
 since last year.  The ongoing, prolonged financial uncertainty about
 Commercial Guaranty puts further stress on the company and has prompted its
 auditors to question its ability to continue as a going concern.
     Standard & Poor's will assess Commercial Guaranty's operating and capital
 plans, as well as its capital structure in the context of Standard & Poor's
 minimum capital requirements and general ratings criteria.  The impact of any
 new investor capital will be evaluated if and when it occurs.
 
 SOURCE  Standard & Poor's