On Nov. 17, 2003, Standard&Poor's Ratings Services placed its 'BBB+' counterparty credit and debt ratings on the St. Paul Cos. Inc. (NYSE:SPC) and its 'A+' counterparty credit and financial strength ratings on SPC's insurance company subsidiaries on CreditWatch with positive implications. This action follows the company's announcement that its Board of Directors has approved a plan to merge with Travelers Property Casualty Corp. (NYSE:TAP.A; A-/Negative/--) in the first half of 2004. The decision to place these ratings on CreditWatch reflects the possibility that, following completion of the merger, Standard&Poor's will affirm the existing ratings or raise them one notch to the current ratings on Travelers. The financial strength rating on Travelers's insurance operating subsidiaries is 'AA-',
