On April 16, 2002, Standard&Poor's lowered its financial strength and long-term credit ratings on Mitsui Sumitomo Insurance Co. Ltd. (MSI) to 'AA-' following the lowering of the long-term sovereign ratings on Japan to 'AA-' with a negative outlook on April 15, 2002. The outlook on the long-term rating on MSI is negative. The ratings on MSI, formed through the merger of leading Japanese nonlife insurers Mitsui Marine&Fire Insurance Co. Ltd. and Sumitomo Marine&Fire Insurance Co. Ltd., are based on an excellent market position it inherited from the merger, and the new company's solid financial profile, characterized by very strong capitalization and good quality assets. Moderating factors include the competitive environment of the Japanese nonlife
