S&P Global Ratings affirmed the ratings of 'ssubsidiaries following the company's announcement to

The rating agency affirmed the A+ financial strength andlong-term counterparty credit ratings of Sompo Japan Nipponkoa Insurance Inc. and

The outlooks are stable.

At the same time, the rating agency lowered the group'sanchor to "a+" from "aa-" to reflect its view that theplanned acquisition will erode its capitalization.

S&P said it expects the proposed deal to help the groupdiversify its earnings sources given that Endurance Specialty engages in directand reinsurance businesses in the U.S., Bermuda and the U.K.

The rating agency said it could lower the companies' ratingsif there is a persistent deterioration in the group's operating performance orif it lowers Japan's sovereign rating, among other things. S&P does notexpect to upgrade the ratings in the near term.

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.