Article: DCR Lowers New Cap Reinsurance Holdings Ltd.'s Ratings to 'BBB+'.

CHICAGO, Sept. 30 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has lowered the claims paying ability ratings of New Cap Reinsurance Corporation Ltd. (Australia) and New Cap Reinsurance Corporation (Bermuda) Ltd. to 'BBB+' (Triple-B-Plus) from 'A (Single-A). Both companies are subsidiaries of New Cap Reinsurance Corporation Holdings Ltd. (New Cap Re). The rating outlook is stable.

The rating action is based on poor underwriting results that are considerably below ratings expectations, which has led to a 11 percent reduction in shareholders' equity from yearend 1997 levels. The company faces considerable challenges in improving operating profitability ...

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