On June 14, 2006, Standard&Poor's Ratings Services raised its counterparty credit rating on St. Paul Travelers Cos. (NYSE:STA) to 'A-' from 'BBB+'. At the same time, Standard&Poor's raised its counterparty credit and financial strength ratings on the operating company members of the St. Paul Travelers Insurance Group to 'AA-' from 'A+'. The outlook on all these companies is stable. These rating actions are based on the group's very strong market position, substantially improved operating performance, very strong operating company capitalization, and conservative financial leverage and coverage ratios. The rating action also reflects Standard&Poor's opinion that the reserving and integration issues arising from the merger of St. Paul Cos. Inc. and Travelers Property Casualty Corp.
