Search
 

Moody's Downgrades Channel Re

Moody's Investors Service has downgraded the financial strength rating of Channel Reinsurance from "Aa3" to "Baa1," citing Channel Re's "overall credit profile in the current environment." The outlook

By Staff Writer | Updated on August 04, 2008

Moody’s Investors Service has downgraded the financial strength rating of Channel Reinsurance from “Aa3″ to “Baa1,” citing Channel Re’s “overall credit profile in the current environment.” The outlook for the rating is negative.

Moody’s said that market perceptions about Channel Re’s “only primary client,” the bond insurer MBIA, have impacted Channel Re’s ability to write new business in the last few months. “If business volumes continue to remain weak, Channel Re’s investors could decide to reconsider their long-term commitment to the financial guaranty reinsurance business, potentially resulting in a change in strategy or a downsizing of the firm’s capital base going forward,” Moody’s said.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.