NEW YORK (Standard&Poor's) Feb. 4, 2003--Standard&Poor's Ratings Services said today that it lowered its counterparty credit and financial strength ratings on Argonaut Group Inc.'s property/casualty insurance companies (Argonaut) to 'BBB+' from 'A' based on the likely capital strain associated with the announced asbestos and environmental study and the company's declining capitalization. Standard&Poor's also said that these ratings remain on CreditWatch with negative implications. "Argonaut's capitalization and equity have declined in the past three years," noted Standard&Poor's credit analyst Frederic A. Sklow. "Offsetting these negative factors are the company's improving operating performance, conservative but solid management, strong distribution channels, successful efforts in increasing diversification, focused loss reserving posture, and conservative investment profile." Standard
