CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - DECEMBER 08, 2009 12:00 AM (EST)
A.M. Best Co. has downgraded the financial strength rating to B++ (Good) from A- (Excellent) and the issuer credit rating (ICR) to "bbb+" from "a-" of Novae Insurance Company Limited (NICL) and placed the ratings under review with negative implications.
Concurrently, A.M. Best has placed the ICRs of "bbb" and "bbb-"of Novae Group plc (Novae) and Novae Holdings Limited (Novae Holdings), respectively, under review with negative implications. Additionally, A.M. Best has placed under review with negative implications the debt ratings of "bbb-"on the GBP 70 million subordinated notes due 2017 issued by Novae, and the debt ratings of "bbb-" on the USD 15 million senior unsecured floating rate notes due 2034, "bb+" on the USD 11 million subordinated floating rate notes due 2034 and "bbb-"on the USD 10 million senior unsecured floating rate notes due 2034, all issued by Novae Holdings.
The Best's Syndicate Rating of A (Excellent) and ICR of "a+" of Lloyd's Syndicate 2007, which is managed by Novae Syndicates Limited (NSL), are unchanged at the Lloyd's market level. All the Novae companies are domiciled in the United Kingdom.
The downgrading of NICL's ratings follows Novae's announcement that business currently underwritten by the company will be renewed into syndicate 2007. The ratings will remain under review with negative implications while A.M. Best assesses management's future plans for existing liabilities and the impact that the group's capital restructuring will have on NICL. The ratings of Novae and Novae Holdings have been placed under review as A.M. Best needs to evaluate the impact of the capital restructuring on the group's consolidated risk-adjusted capitalisation.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.