On Aug. 9, 2004, Standard & Poor's Ratings Services assigned its 'BBB' counterparty credit rating to Bermuda-based Aspen Insurance Holdings Ltd. The outlook is stable. The rating on Aspen reflects its position as the holding company of the Aspen group, the principal operating subsidiaries of which are U.K.-based Aspen Insurance U.K. Ltd. (A/Stable/--) and Bermuda-based Aspen Insurance Ltd. (A/Stable/--). The rating also reflects key features of the group's operating profile, such as its strong competitive position, strong operating performance, and very strong capitalization. These factors are partially offset by risk inherent in the group's growth strategy and the potential volatility of the business classes it focuses on. In addition, the rating considers the structural subordination of creditors to policyholders of
