A.M. Best downgraded Swiss Re's insurance financial strength,saying it did not believe the company has enough risk capital towithstand another catastrophic loss.

The Oldwick, N.J.-based insurer downgraded the financialstrength rating to “A (Excellent)” from “A-plus (Superior).” Italso downgraded the issuer credit ratings to “a-plus” from“double-a-minus.” All ratings were removed from under review withnegative implications and assigned a stable outlook.

“Swiss Re's overall risk-adjusted capitalization does not havesufficient cushion to weather more negative effects of the continueturmoil in the financial markets and other unexpected events,” Bestsaid in a statement late on Friday.

Despite the capital raise and reinsurance purchases the companyhas made, Best said the Switzerland-based carrier is exposed tofurther volatility and mark-to-market adjustments from credit swapsand securitized products. Best noted that Swiss Re has taken actionto reduce these and other financial risk exposures.

The rating agency said it will continue to monitor the company'scompetitive position, “which is key to its future earningscapability and strong financial flexibility.”