Quanta Capital Holdings today became the second Bermuda-based company to suffer a dangerous cut below an "A-minus" rating level in recent weeks, prompting the company to announce a review of alternatives including a possible sale.
A.M. Best Co. downgraded the financial strength ratings of all insurance and reinsurance operations of Quanta to "B-double-plus" (very good), also lowering various credit ratings. With the cut, the Oldwick, N.J.-based rating agency also placed all ratings under review with negative implications.
The downgrade follows Quanta's report of a fourth-quarter 2005 net loss of $40-to-$45 million, also reported today, which Best said included "unexpected loss reserve development" for Hurricanes Katrina and Rita, as well as other actuarial reserve adjustments and reported charges.
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