TOKYO (Standard&Poor's) June 22, 2006--Standard&Poor's Ratings Services today said that its ratings on Mitsui Sumitomo Insurance Co. Ltd. (MSI; AA-/Positive/A-1+) would not be affected by the Financial Services Agency's (FSA) order to suspend part of its insurance operations and to improve its internal controls and compliance practices. However, the positive outlook on the rating on MSI could be revised downward if the company is unable to rectify deficiencies in its internal control systems or if the company is penalized again by the FSA. In its administrative order issued yesterday, the FSA stated that MSI's corporate governance and internal control functions were seriously flawed, causing hundreds of cases of improper nonpayment of insurance claims and insufficient management
