A.M. Best Co. has assigned a debt rating of “bbb” to $250 million 6.08 percent perpetual preferred stock, recently issued by RenaissanceRe Holdings Ltd. (RenaissanceRe).
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 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 percent range, which is commensurate with its current debt ratings. A.M. Best will complete its annual review of ReniassanceRe in the near term.
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