Bear Stearns downgraded Scottish Re Group (SCT) to underperform from peer perform, after Scott Willkomm resigned as President and CEO.
Analyst Saul Martinez says Paul Goldean is appointed interim CEO. He places his earnings per share (EPS) estimates under review pending the release of second quarter results Aug. 3. He cites his greater concern about the financial condition of the company. He notes he's long been concerned about operating issues given numerous operational hiccups in recent years; however, the latest charge may put in danger the financial strength of the company. He's concerned the downgrade in the financial strength rating would cause substantial adverse consequences.