On June 25, 2007, Standard&Poor's Ratings Services revised its outlook on Italian composite insurer Società Cattolica di Assicurazione to negative from stable. At the same time, the 'A-' long-term counterparty credit and insurer financial strength ratings on Cattolica were affirmed. The outlook change reflects our increasing concerns that the company will not be able to restore profitability, which deteriorated significantly in 2006 and 2007, and business growth, which was affected by the loss of an important bancassurance agreement and by the pruning of the property/casualty (P/C) portfolio. Factors supporting the ratings are Cattolica's strong competitive position in the Italian insurance market and strong financial flexibility. Offsetting factors are the group's weakened operating performance and reduced growth that could
