A.M. Best Co. has downgraded the financial strength rating (FSR) and issuer credit rating (ICR) of Lehman Re Limited for the second time in a week, due to the status of its parent company, Lehman Brothers Holding Inc.
Last week, the rating agency lowered the Hamilton, Bermuda-based reinsurer's FSR to "A-minus" from "A" and ICR to "a-minus" from "a." Now A.M. Best announced it has lowered the FSR again to "B" and the ICR to "bb." The outlook for both ratings remains negative.
The latest rating decision, Oldwick, N.J.-based Best said, is in response to Lehman Brothers' petition for Chapter 11 bankruptcy protection. Best noted that Lehman Re is not in the bankruptcy petition, but said the status of Lehman Brothers "could have a significant adverse impact on Lehman Re."
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