A.M. Best Downgrades and Withdraws Ratings of PXRE.OLDWICK, N.J. -- A.M. Best Co. has downgraded the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) to B (Fair) from B+ (Very Good) and the issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) to "bb" from "bbb-" for the 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. subsidiaries of the PXRE Group Ltd. (PXRE) (NYSE NYSE See: New York Stock Exchange : PXT PXT Pocket Excel Template ) (Bermuda). The rating actions apply to PXRE Reinsurance Ltd. (Bermuda) and PXRE Reinsurance Company (Hartford, CT). A.M. Best has also downgraded PXRE's ICR to "b" from "bb-" and all its existing and indicative debt ratings. All ratings have been removed from under review with negative implications and assigned a negative outlook. Subsequently, all FSR and ICR ratings will be withdrawn and a rating of NR-4 (Company Request) will be assigned in response to management's request that PXRE be removed from A.M. Best's interactive rating process. These actions follow A.M. Best's previous downgrades of PXRE's ratings in February 2006 after the company announced that it had materially increased its net loss estimates for hurricanes Katrina, Rita and Wilma. The following debt rating has been downgraded and removed from under review with a negative outlook: PXRE Capital Trust I-- --to "ccc" from "b" on $100 million 8.85% trust preferred securities, due 2027 The following indicative debt ratings for securities available under shelf registration have been downgraded and removed from under review with a negative outlook: PXRE Group Ltd.-- --to "b" from "bb-" on senior unsecured --to "b-" from "b+" on subordinated --to "ccc" from "b" on 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. PXRE Capital Trust IV-- --to "ccc" from "b" on trust preferred securities 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 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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