Ratings Roundup: Hatherley, RenRe (debt) DR, Cathay Century

August 23, 2007

A.M. Best Co. has assigned a financial strength rating of “A-” (Excellent) and an issuer credit rating of “a-” to Bermuda-based Hatherley Insurance Ltd. with a stable outlook. “These ratings reflect Hatherley’s strong risk-adjusted capitalization, excellent liquidity and conservative operating strategy,” said Best. Hatherley is a captive of JPMorgan Chase & Co and plays an “important role” in the group’s casualty insurance programs.

Standard & Poor’s Ratings Services has assigned its preliminary ‘A-‘ senior debt, ‘BBB+’ subordinated debt, ‘BBB’ junior subordinated debt, and ‘BBB’ preferred stock ratings to RenaissanceRe Holdings Ltd.’s recently filed S-3 $750 million universal shelf registration. S&P said it “does not expect any potential issuances under the shelf to lead to a material change in the group’s financial leverage,” which remain within its expectations.

Standard & Poor’s Ratings Services has affirmed its ‘A+’ long-term counterparty and insurer financial strength ratings on Germany’s Deutsche R├╝ckversicherung AG (DR) and DR’s Swiss subsidiary Deutsche R├╝ckversicherung Schweiz AG (DR Swiss). S&P also affirmed the “core status” of DR and DR Swiss with a stable outlook. “The ratings affirmation for DR reflects DR group’s (DR and DR Swiss together) unique position as internal reinsurer within the German public law insurance (PLI) sector, its strong operating performance, and very strong capitalization,” stated S&P credit analyst Wolfgang Rief.

Standard & Poor’s Ratings Services has affirmed its ‘A-‘ insurer financial strength and counterparty credit ratings on Cathay Century Insurance Co. Ltd. with a stable outlook. “The ratings on Cathay Century reflect the company’s satisfactory market position, good operating performance, and adequate capitalization,” noted S&P credit analyst Paul Clarkson. “These factors are tempered by the insurer’s aggressive medium-term growth strategy, which may raise the volatility of its operating performance.”

Source: A.M. Best, S&P

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