NEW YORK (Standard&Poor's) June 6, 2002--Standard&Poor's today commented on St. Paul Cos. Inc.'s announcement that it has entered into a definitive agreement to settle for $988 million all asbestos and other claims arising from an insuring relationship that existed prior to 1961 between Western Asbestos Co. (certain assets of which were acquired by Western MacArthur in 1967) and USF&G Co., which became a St. Paul subsidiary in 1998. The ratings on St. Paul and its subsidiaries remain on CreditWatch with negative implications, where they were placed on May 16, 2002. The ratings were placed on CreditWatch because of the uncertainty associated with St. Paul's determination to seek more aggressive early resolution of asbestos and environmental-related litigation
