counterparty credit ratings on Bermuda-based Partner Reinsurance Co. Ltd.

However, in the wake of the Winterthur deal the ratings agency revised the company's outlook to negative from stable.

Last year Standard & Poor's put the company on credit watch with "negative implications'' after it announced the pending purchase of reinsurer Societe Anonyme Francaise de Reassurances (SAFR). About four months later the ratings agency reaffirmed the AA rating and lauded the company for its "diversified operating strategy''.

This time Standard & Poor's speculated that PartnerRe may be doing some more buying in the future. "Standard & Poor's believes that Winterthur Re's risk portfolio may overlap that of SAFR's but expectations are that it will be modest,'' the agency stated. "The outlook reflects concerns about PartnerRe's potential for future acquisitions or expansion which may strain the organisation from both an intellectual and financial standpoint.'' The agency also affirmed its double "A'' rating on SAFR with the outlook revised to negative and affirmed its single "A'' plus rating on PartnerRe US with a positive outlook. PartnerRe's single "A'' preferred stock rating was affirmed with a negative outlook.