A.M. Best Co. said it has downgraded the financial strength rating and issuer credit rating of Bermuda-based Lehman Re Limited, a wholly owned reinsurance subsidiary of financially embattled Lehman Brothers Holding Inc. The outlook is negative.
A.M. Best lowered Lehman Re's FSR to "A-minus" from "A" and ICR to "a-minus" from "a," citing concerns about the "perceived financial difficulties" of the reinsurer's parent company, Lehman Brothers.
The Oldwick, N.J.-based rating agency said, "Lehman Brothers has experienced a significant decline in its market capitalization, and A.M. Best believes that this rapid deterioration in investor confidence generates uncertainty as to the ability of the parent to raise capital to support Lehman Re, if needed."
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