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Article: DCR Lowers New Cap Reinsurance Holdings Ltd.'s Ratings to 'BBB+'.
- Article from:
- PR Newswire
- Article date:
- September 30, 1998
CopyrightCOPYRIGHT 1998 PR Newswire Association LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 ...