Difficult financial market conditions and our view of increased credit risk in Italy have weakened Cattolica's risk-adjusted capital adequacy to marginal levels. We are therefore lowering the ratings on Cattolica to 'BBB' from 'BBB+'. We are also removing the ratings from CreditWatch, where they were placed with negative implications on Dec. 9, 2011. The negative outlook reflects our view that the current market conditions and economic outlook in Italy and the eurozone will continue to weigh on Cattolica's financial profile. On Jan. 27, 2012, Standard&Poor's Ratings Services lowered its long-term counterparty credit and insurer financial strength ratings on Italy-based composite insurer Società Cattolica di Assicurazione (Cattolica) to 'BBB' from 'BBB+'. At the same time, we removed all ratings
