Standard & Poor's placed its
single-'A' counterparty credit and financial strength ratings on the
California State Compensation Insurance Fund on CreditWatch with negative
implications.
S&P says that this rating action is based on concerns over the gradual deterioration of
the fund's capital adequacy, which is a direct result of three consecutive
years of net operating losses and rapid growth in written premiums in 2000.
Standard & Poor's will be meeting with the fund's management in the near
future to discuss these concerns.Source: Standard & Poor's...
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