A.M. Best Co. has downgraded the financial strength rating (FSR)and issuer credit rating (ICR) of Lehman Re Limited for the secondtime in a week, due to the status of its parent company, LehmanBrothers Holding Inc.
Last week, the rating agency lowered the Hamilton, Bermuda-basedreinsurer'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 remainsnegative.
The latest rating decision, Oldwick, N.J.-based Best said, is inresponse to Lehman Brothers' petition for Chapter 11 bankruptcyprotection. Best noted that Lehman Re is not in the bankruptcypetition, but said the status of Lehman Brothers "could have asignificant adverse impact on Lehman Re."
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