S&P Removes SCIF from CreditWatch

Standard & Poor's removed from CreditWatch and lowered its counterparty credit and financial strength ratings on the California State Compensation Insurance Fund yesterday to triple-'B'-plus from single-'A'. These ratings had been placed on CreditWatch on April 17, 2001, with negative implications. The outlook continues negative. The downgrade reflects the steady deterioration in the fund's capital adequacy, which was fueled by consecutive years of net operating losses, weakening reserve adequacy, and rapid premium growth. S&P commented that the Fund has had operating losses each year sinc...