A.M. Best Assigns Rating to RenaissanceRe's Preferred Stock.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--March 23, 2004 A.M. Best Co. has assigned a debt rating of "bbb" to $250 million 6.08% perpetual 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. , recently issued by RenaissanceRe Holdings Ltd. (RenaissanceRe) (NYSE NYSE See: New York Stock Exchange : RNR RNR Rock 'N Roll RNR Royal Naval Reserve RNR Ribonucleotide Reductase RNR Receive Not Ready (ITU-T; ISDN) RNR Research News Reporter RNR Rest and Relaxation RNR Registry of Nursing Research RNR Rest and Recreation ) (Bermuda). A.M. Best has also affirmed all existing debt ratings. The financial strength ratings of the operating subsidiaries of RenaissanceRe are unaffected by this action. The outlook for all ratings remains stable. This security is redeemable by RenaissanceRe five years after issuance. The 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). will be used by RenaissanceRe for general corporate purposes. Following the issuance of these securities, RenaissanceRe's financial leverage--debt plus preferred securities as a percentage of total adjusted capital--remains in the 30% range, which is commensurate with its current debt ratings. A.M. Best will complete its annual review of ReniassanceRe in the near term. The following debt rating has been assigned: RenaissanceRe Holdings Ltd.-- -- "bbb" on $250 million 6.08% Series C perpetual preferred stock The following debt ratings have been affirmed: RenaissanceRe Holdings Ltd.-- -- "a" on $150 million 7.00% senior unsecured notes, due 2008 -- "a" on $100 million 5.875% senior unsecured notes, due 2013 -- "bbb" on $150 million 8.10% Series A perpetual preferred stock -- "bbb" on $100 million 7.30% Series B perpetual preferred stock RenaissanceRe Capital Trust-- -- "bbb+" on $100 million 8.54% guaranteed preferred trust securities, due 2027 The following indicative ratings have been affirmed for debt securities available under the existing shelf registration: RenaissanceRe Holdings Ltd.-- -- "a" on senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. -- "a-" 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". -- "bbb" on preferred stock RenaissanceRe Capital Trust II-- -- "bbb+" on trust preferred securities The financial strength ratings of A+ (Superior) are unaffected for the following operating subsidiaries of RenaissanceRe Holdings, Ltd.: -- Renaissance 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. Ltd. -- Renaissance Reinsurance of Europe The financial strength ratings of A (Excellent) are unaffected for the following operating subsidiaries of RenaissanceRe Holdings, Ltd.: -- Glencoe Insurance Ltd. -- Stonington Insurance Company -- Lantana lantana (lăntā`nə): see verbena. lantana Any of more than 150 shrubs that make up the genus Lantana in the verbena family, native to the New World and African tropics. Insurance Ltd. -- Overseas Partners Cat Limited -- Stonington Lloyds Insurance Company 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://www3.ambest.com/reinsurance/ For a list of A.M. Best's debt ratings, please visit http://www3.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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion