NY -- Standard&Poor's CreditWire 2/21/96 -- Standard&Poor's places its triple-`B'-plus senior debt rating of Fairfax Financial Holdings Ltd. on CreditWatch with negative implications, following the announcement of the company's pending purchase of New York-based Skandia America Reinsurance Corp. (SARC). Additionally, Standard&Poor's places its triple-`B' claims-paying ability rating of SARC on CreditWatch with positive implications, reflecting the benefits of a new stop-loss indemnification agreement ($175 million) as well as Fairfax's proven financial flexibility. Standard&Poor's believes the stop-loss indemnification agreement provides SARC with needed capital to fund future environmental exposure. Standard&Poor's will be meeting with management to evaluate the transaction on both entities. SARC's business position has deteriorated during the past two
