A.M. Best Co. has commented that the financial strength rating of ‘A-‘ (Excellent) and issuer credit rating (ICR) of “a-” of Bermuda-based Validus Reinsurance Ltd., as well as the ICR of “bbb-” and the indicative ratings of “bbb-“, “bb+” and “bb” of senior debt, subordinated debt and preferred stock shelf registration, respectively, of Validus Holdings, Ltd. “are unchanged following the recent unsolicited offer by Validus Holdings to acquire Transatlantic Holdings Inc.
In addition Best noted that these ratings all currently have a “positive outlook.”
The comment came after Validus made an unsolicited competing offer to acquire Transatlantic in a stock-for-stock merger, with a total consideration of $55.95 per Transatlantic share, which includes a pre-closing special cash dividend of $500 million. The offer topped that made earlier by Allied World Assurance.
Best said that while it “believes the proposed transaction would be material to Validus, there are no rating implications at this time resulting from the offer itself.”
Source: A.M. Best
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