S&P Affirms Steamship P&I London ‘A-’ Ratings

Standard & Poor’s Ratings Services announced that it has affirmed its “A-” counterparty credit and insurer financial strength ratings on The Standard Steamship Owners’ P&I Association (London) Ltd. (SL or the club) with a stable outlook.

“The ratings on The Standard Steamship Owners’ P&I Association (London) Ltd. are based on its membership of the Standard family of clubs, which includes SL’s larger sister, The Standard Steamship Owners’ P&I Association (Bermuda) Ltd.; strong capitalization; good operating performance; and good competitive position,” stated S&P credit analyst Lucy Stupples.

S&P noted that offsetting these positive factors “are SL’s modest size and its limited, albeit good, financial flexibility (being the balance between capital requirements and sources).”

Stupples added: “The stable outlook reflects Standard & Poor’s expectation that capitalization will remain strong. The capital adequacy ratio is expected to remain extremely strong and more than supportive of the rating.”

S&P also noted: “Operating performance is expected to remain strong, with the combined ratio being maintained below 100 percent over the medium term. The club’s bottom-line results should stabilize as investment results return to a more sustainable level.

“The club will not be announcing a general increase at February 2005 renewal, choosing instead to selectively re-rate its business on a case-by-case basis. Competitive position should remain good as the club continues to diversify more into European coastal operators while retaining its commitment to inland waterways.”