Standard & Poor’s Ratings Services has placed its ‘B- (sf)’ rating on Montana Re Ltd.’s Class E notes on CreditWatch with negative implications.
The notes, totaling $210 million, were originally placed at the end of December 2010 by Flagstone Re.
S&P explained that it has taken the action following the “issuer’s submission of an activation notice to Risk Management Solutions (RMS) related to the March 11, 2011, earthquake in Japan.
“If RMS determines that the earthquake is an activation event, then the note holders will be at risk for losses of principal and interest for subsequent covered events that occur from March 11 through Dec. 31, 2011.”
In addition S&P explained that if the earthquake is determined to be a “covered event,” it would expect to “lower the rating to ‘CCC- (sf)’.”
The rating agency said it would continue to monitor the situation, and if the earthquake “is not an activation event, we will remove the rating from CreditWatch negative, and the notes will remain rated ‘B- (sf)’.”
Source: Standard & Poor’s
Topics Catastrophe
Was this article valuable?
Here are more articles you may enjoy.
Viewpoint: How Will the Middle East War Affect the Insurance Sector? 
US Senate Votes to Fund Most of Homeland Security After Shutdown Disrupts Airports 
Florida Man Faked Brain Injury for Years in Attempt to Gain $6M in Insurance 
Taylor Swift Sued for Trademark Infringement Over ‘Life of a Showgirl’ 
