NY -- Standard&Poor's CreditWire 10/15/97 -- Following confirmation by B.A.T Industries Plc (BAT; single-'A'-plus senior debt rating) and Zurich Insurance Co. (Zurich; double-'A'-plus claims-paying ability rating) that they are discussing the possible merger of BAT's financial services businesses with Zurich which would require a demerger of BAT's tobacco and financial services businesses, BAT's ratings remain on CreditWatch with negative implications. The rating on Zurich has now been placed on CreditWatch with negative implications and various other CreditWatch actions have been taken affecting the subsidiaries of Zurich and BAT (see list below). Standard&Poor's is discussing the proposals with the management of both groups and will determine the respective rating implications over the next few weeks. In the
