Moody's Downgrades Munich/American Re

On Friday Moody's Investors Service downgraded the insurance financial strength rating of Munich Reinsurance Company from Aaa to Aa1. In addition, Moody's downgraded the insurance financial strength rating of its US subsidiary, American Re Corporation, to Aa2 and its senior debt rating to Aa3. The rating outlook for all the ratings is stable. Moody's said that the ratings of Munich Re and American Re (AR) were placed on review for downgrade on 23 July 2002 following Munich Re's announcement on July 10 that it would be increasing reserves at AR by $2bn, raising its IBNR provisions for the WTC...