A.M. Best Assigns Ratings to Forthcoming Debt to Be Issued by Catlin Insurance Company Limited.OLDWICK, N.J. -- A.M. Best Co. has assigned an indicative rating of "bbb+" to the forthcoming issue of dated fixed/floating rate subordinated notes and an indicative rating of "bbb" to the forthcoming issue of U.S. dollar-denominated non-cumulative perpetual preferred shares to be issued by Catlin Insurance Company Limited (CICL CICL Central Illinois Collegiate League (baseball) CICL Cast Iron Cement Lined (pipe) CICL cast iron concrete lined (pipe) ), a Bermuda-domiciled general insurer. These ratings are under review with negative implications, in line with CICL's financial strength and issuer credit ratings. (See A.M. Best's press releases of 19 October 2006 and 19 December 2006.) CICL is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Catlin Group Limited (CGL See Carrier Grade Linux. ), a Bermuda-based holding company. A.M. Best anticipates that the proceeds of these issues will be used to repay USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 500 million of bridging finance employed for the purchase of Wellington Underwriting Plc, to refinance senior debt and for general business purposes. Financial and debt leverage ratios are expected to remain within A.M. Best tolerance levels. Both issues are 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 10 years and, if not called, the interest rate under the subordinated notes and the dividend under the preference shares will be stepped up by 100 basis points over the initial credit spread on a London inter-bank offer rate (LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). ) basis, and the base rate will move from the fixed rate to floating three-month LIBOR. For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. 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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