S&P Affirms PXRE Ratings, Outlook Stable

April 8, 2002

Standard & Poor’s announced that it has removed from CreditWatch and affirmed all its ratings on Bermuda’s PXRE Corp., including its triple-‘B’ counterparty credit rating, “because of PXRE’s successful issuance of $150 million in privately placed convertible preferred stock,” (See IJ Website April 5).

S&P also announced that it has removed from CreditWatch and has affirmed its single-‘A’ counterparty credit and financial strength ratings on PXRE Reinsurance Co. and PXRE Reinsurance Ltd., PXRE’s operating companies, and that “the outlook on all these companies is stable.”

The rating agency stated that it “expects the issuance to bolster the capital adequacy at PXRE Corp.’s operating subsidiaries significantly and enhance the company’s financial flexibility.”

It also expects to see a “significantly improved operating performance in 2002 because of hardening market conditions in PXRE’s business lines and management’s strategic decision to refocus the franchise on its core property catastrophe business.”

It warned however that “Partially offsetting these factors are the weak operating results reported by the group over the last three years as well as a narrower business position with its return to a monoline catastrophe franchise.

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