Petrosurance Revised to ‘R’

Standard & Poor’s revised its financial strength rating on Petrosurance Casualty Corp. to “R” after learning that the Oklahoma County District Court granted Insurance Commissioner Carroll Fisher’s petition to place the company into receivership. The ruling was based on the finding that Petrosurance is insolvent by $5.2 million. Petrosurance is an Arlington, Texas-based insurer that writes primarily workers’ compensation insurance for contractors that service the oil and gas industry in West Texas, Oklahoma, Louisiana and Kansas. The company commenced operations in 1975. When S&P affirmed its double-“Bpi” financial strength rating on Petrosurance on March 3, 2000, it cited the company’s marginal operating performance and earnings, and its vulnerable liquidity.