Not unexpected was the announcement by Standard & Poor’s last week that it has downgraded HIH’s “core operating entities” from BBB+ to BBB-, with a negative creditwatch. But it also held out some hope to the beleaguered company’s board and executives. Explaining that the downgrading is in response to its belief that the loss will be outside of the BBB+ rating, S&P’s noted that a “significant portion” of the expected loss is attributable to once-off restructuring items and the treatment of intangible items.

“As such, the outlook for the profitability of the ongoing operations is more favourable in the medium term.”