A.M. Best Co. has downgraded the debt ratings to “c” from “b+” on $100 million principal at-risk variable rate Series 1, Class A notes of Ajax Re Ltd., to “c” from “bb+” on $250 million principal at-risk variable rate Series 2007-1 Class B notes of Willow Re Ltd. and to “c” from “bb” on $150 million principal at-risk variable rate Series 2008-1, Class A notes of Newton Re Limited. All three companies were formed in the Cayman Islands. Best has also removed the ratings from under review with negative implications and assigned a negative outlook.
In addition Best affirmed the debt ratings of “bb+” on $87.5 million principal at-risk variable rate Series 2007-1, Class A notes and “bb-“on $137.5 million principal at-risk variable rate Series 2007-1, Class B notes of Newton Re Limited. The outlook on these ratings is stable.
Best explained: “These rating actions reflect the unlikelihood of finding a total return swap counterparty replacement for Lehman Brothers Special Financing Inc., which subsequently filed for a petition of bankruptcy under Chapter 11 of the U.S. Bankruptcy Code and the uncertainty surrounding the market values of the securities in the collateral account.”
Source: A.M. Best – www.ambest.com
Topics Catastrophe
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