A.M. Best Assigns Rating to PartnerRe's Proposed Junior Subordinated Capital Notes.

OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb" to PartnerRe Ltd. 's (PartnerRe) (Hamilton, Bermuda) proposed $250 million junior subordinated capital efficient notes (CENts) offering due 2066. The rating outlook is stable. All other ratings of PartnerRe and its subsidiaries remain unchanged.

The offering is drawn upon PartnerRe's existing shelf registration with the proceeds expected to be utilized to fund the maturity of PartnerRe's $200 million 7.90% trust preferred securities callable by the company no earlier than November 21, 2006.

On a prospective basis, PartnerRe's debt and preferred issues will be approximately 31% of total capital after the redemption of the aforementioned securities on November 21, 2006, which is at the high-end of the acceptable range for its current rating level. However, solid operating earnings reported at September 30, 2006 have bolstered PartnerRe's capitalization. Prospectively, A.M. Best expects that PartnerRe will maintain a level of financial leverage at 35% or less while maintaining a fixed charge coverage in the mid- to upper-single-digit range.

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