Converium made headlines when it was downgraded to a "triple-B" from "A-minus" by Standard & Poor's on Sept. 10, just prior to the reinsurance Rendez-Vous de Septembre in Monte Carlo?an annual gathering of insurers and reinsurers where reinsurers discuss future business with clients.

The company said then that it was putting its United States operations in runoff.

S&P first lowered Converium's rating to "A-minus" in July when the company revealed that it would need to boost reserves on casualty business in the United States by nearly $400 million.

A.M. Best and Moody's also announced downgrades, with the Best rating falling to "B-double-plus" from "A-minus" on Sept. 1, and the Moody's rating dropping to Baa1 from A2 on Aug. 31. Fitch ratings in London downgraded the reinsurer to "double-B-plus" from "A-minus."

On Sept. 29, however, A.M. Best Co. announced it had affirmed the financial strength rating of "B-double-plus" and upgraded the issuer credit rating to "triple-B-plus" from "triple-B" of Converium AG (Switzerland) and certain rated subsidiaries.

The under review status has been removed and the outlook is stable for all ratings affected, according to A.M. Best.

Jose Sanchez-Crespo, general manager of the A.M. Best London office, told National Underwriter that the upgrade was in response to measures taken by Converium, including a significant reduction of premium of one of the companies in North America, which the company originally intended to continue trading.

"They will write a small proportion directly from Switzerland," he said. "Obviously, it will not be the same volume they have been doing so the premium risk will be significantly reduced."

A.M. Best said in September that the positive rating action follows shareholders' approval of Converium's fully underwritten CHF 533 million (US $420 million) rights issue and reflects A.M. Best's evaluation of the company's latest business plan, which incorporates an estimated reduction in net premium written of more than 50 percent in 2005. An offsetting factor in the rating is continuing risk from the company's reserves.