A.M. Best Assigns Debt Rating to Odyssey Re Holdings Corp.'s Senior Notes.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb" to Odyssey Odyssey (ŏd`ĭsē): see Homer. Odyssey Homer’s long, narrative poem centered on Odysseus. [Gk. Lit.: Odyssey] See : Epic Odyssey Re Holdings Corp.'s (Odyssey Re) (NYSE NYSE See: New York Stock Exchange : ORH ORH Worcester (Airport) ORH Operation Restore Hope ORH Worcester, MA, USA - Worcester /James D O'Brien Field (Airport Code) ) (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY) proposed issuance of $125 million principal amount of 6.875% senior notes due 2015. Existing debt and shelf ratings of Odyssey Re as well as the financial strength ratings of A (Excellent) for the members of Odyssey 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. Group (ORG) (Delaware) are unchanged. The issuer credit ratings of "a" for ORG, Odyssey America Reinsurance Corporation (Stamford, CT) and Clearwater Insurance Company (Delaware) are also unchanged. Concurrently, A.M. Best has assigned issuer credit ratings (ICRs) of "a" to Hudson Insurance Company (Delaware) and Hudson Specialty Insurance Company (New York). All ratings have a negative outlook. Proceeds of the issuance will be used to redeem $110 million principal amount of 4.375% convertible senior debentures due 2022, which are redeemable at Odyssey Re's option beginning on June 22, 2005. Following the issuance, $275 million of availability will remain under Odyssey Re's existing $400 million shelf registration. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, financial leverage will increase marginally to 20.9%, while the company's fixed charge and cash coverage ratios--ranging between four and six times--will remain within the acceptable range of its rating category. A.M. Best expects Odyssey Re to manage its debt-to-capital ratio below 25% as it issues any additional securities under its shelf registration, and the fixed charge and cash coverage ratios are expected to be maintained through sustained earnings. The following senior debt rating has been assigned: Odyssey Re Holdings Corp. --"bbb" on $125 million 6.875% senior notes, due 2015 The following debt ratings are unchanged: Odyssey Re Holdings Corp. --"bbb" on $225 million 7.65% senior notes, due 2013 --"bbb" on $110 million 4.375% convertible senior debentures, due 2022 The following indicative debt ratings available under a $400 million shelf registration are unchanged: Odyssey Re Holdings Corp. --"bbb" on senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. --"bbb-" on subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". --"bb+" on preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. The issuer credit rating of "bbb" is unchanged for Odyssey Re Holdings Corp. The issuer credit ratings of "a" are unchanged for the following entities: --Odyssey America Reinsurance Corporation --Clearwater Insurance Company --Odyssey Reinsurance Group The issuer credit ratings of "a" have been assigned to the following entities: --Hudson Insurance Company --Hudson Specialty Insurance Company The financial strength ratings of A (Excellent) are unchanged for the following members of Odyssey Reinsurance Group: --Odyssey America Reinsurance Corporation --Clearwater Insurance Company --Hudson Insurance Company --Hudson Specialty Insurance Company For Best's Debt Ratings, all other 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. , an overview of the rating process and rating methodologies, please visit: http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit: http://www.ambest.com/reinsurance/. 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 http://www.ambest.com. |
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