A.M. Best Assigns Debt Rating to Everest Re's Senior Notes.OLDWICK, N.J. -- A.M. Best Co. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. a debt rating of "a" to Everest Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Holdings, Inc.'s (Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). ) $250 million 5.40% senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. notes, due 2014. A.M. Best has also affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. all remaining debt ratings. The financial strength rating of A+ (Superior) of the insurance and reinsurance subsidiaries of Everest Re Group Ltd. (Everest Re) (NYSE NYSE See: New York Stock Exchange : RE) (Bermuda), the parent of Everest Reinsurance Holdings, is unaffected. The outlook for the ratings is stable. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the senior debt issuance will be used for general corporate purposes including to contribute to the retirement of Everest Reinsurance Holdings' $250 million 8.50% senior unsecured notes due in March 2005 and the repayment of the outstanding amounts under the company's existing credit facility. The notes are being issued under the company's existing shelf registration statement and subsequent to this issue, $405 million of shelf capacity will remain. Following the new issuance, Everest Re's financial leverage (including trust preferred securities) will be elevated into the upper 20% range until Everest Reinsurance Holdings retires its senior note due in early 2005. At that point, the financial leverage should drop to the low 20% range, which is well within A.M. Best's expectations for Everest Re's current debt ratings. The following debt rating has been assigned with a stable outlook: Everest Reinsurance Holdings, Inc.-- -- "a" on $250 million 5.40% senior notes, due 2014 The following debt ratings have been affirmed with a stable outlook: Everest Re Capital Trust II-- "a-" on $320 million 6.20% trust preferred securities, due 2034 (guaranteed by Everest Reinsurance Holdings, Inc.) Everest Reinsurance Holdings, Inc.-- -- "a" on $250 million 8.50% senior notes, due 2005 -- "a" on $200 million 8.75% senior notes, due 2010 Everest Re Capital Trust-- --"a-" on $200 million 7.85% trust preferred securities, due 2032 (guaranteed by Everest Reinsurance Holdings, Inc.) The following indicative ratings have been affirmed for debt securities available under the existing shelf registration: Everest Re Group, Ltd.-- -- "a" on senior unsecured -- "a-" on subordinated -- "bbb+" on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. Everest Reinsurance Holdings, Inc.-- -- "a" on senior unsecured -- "a-" on subordinated Everest Re Capital Trust III--"a-" on trust preferred securities (guaranteed by Everest Reinsurance Holdings, Inc.) The financial strength rating of A+ (Superior) is unaffected for the following core operating reinsurance and insurance subsidiaries of Everest Re Group, Ltd.: --Everest Reinsurance Company --Everest National Insurance Company --Everest Security Insurance Company --Everest Indemnity Insurance indemnity insurance Managed care A type of health insurance in which a Pt can choose the hospital and provider, and the insurer reimburses the Pt or provider for a set percentage of the cost, minus deductibles and co-payments Company --Everest Reinsurance (Bermuda), Ltd. --Everest International Reinsurance, Ltd. For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 470 reinsurance companies, please visit http://www.ambest.com/reinsurance/. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc. For a list of A.M. Best's Debt Ratings, please visit http://www.ambest.com/debtratings/. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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