A.M. Best Assigns Rating to Scottish Re Group's Preferred Share Issuance.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bb" to Scottish Re Group Limited's (NYSE NYSE See: New York Stock Exchange :SCT Sacrococcygeal teratoma (SCT) A tumor occurring at the base of the fetus's tailbone. Mentioned in: Prenatal Surgery ) (Cayman Islands) planned issuance of $125 million non-cumulative perpetual 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 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. will have a fixed rate dividend for an initial five-year period and will be callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. after five years. After the initial period, the dividends on the securities may become floating, and dividends will be non-cumulative. The rating outlook is stable. All other ratings are unchanged. The proceeds from this offering--which are drawn upon Scottish Re's previously filed $750 million shelf registration--will be used primarily for general corporate purposes. Although the preferred stock issuance reduces Scottish Re's interest coverage, it remains within A.M. Best's expectations. Scottish Re's operating fundamentals remain strong, enhanced by a favorable capital position, market profile and demonstrated success in accessing the capital markets to fund growth both organically and through acquisitions. Offsetting factors include the highly competitive nature of the life and annuity 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. business and integration challenges following the completed acquisition of the reinsurance business of the ING Group. For Best's Debt Ratings, all other Best's Ratings, 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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