A.M. Best Co. has placed under review with developing implications the debt rating of “bb+” on $200 million Series 2008-1 Class A principal at-risk variable rate notes due August 5, 2011, issued by Topiary Capital Limited, which is based in the Cayman Islands.
Best explained that it has taken the rating action “due to the receipt of an activation notice from the issuer requesting that the calculation agent, Risk Management Solutions, Inc., determine whether an activation event or loss event has occurred with respect to the Japan earthquake of March 11, 2011.
“The notes provide Platinum Underwriters Bermuda, Ltd. with up to $200 million in second and subsequent event coverage for qualifying U.S. hurricane, U.S. earthquake, Europe windstorm and Japan earthquake events over a three-year period (August 1, 2008 to August 5, 2011).”
Best also noted that it might take further rating action when the calculation agent determines whether an activation event has occurred.
Source: A.M. Best