NU Online News Service, July 15, 2:21 p.m.EDT

Two rating agencies say the unsolicited bid by Validus HoldingsLtd. to acquire Transatlantic Reinsurance Co. does not affectValidus’ rating.

A.M. Best rates Validus financial strength at “A-minus(Excellent)” and S&P gives the company a “Triple-B/Stable”rating.

“While A.M. Best believes the proposed transaction would be material to Validus, there are norating implications at this time resulting from the offer itself,”says A.M. Best.

For its part, Standard & Poor’s says, “Although we don’tplan an immediate rating action on any of these companies as aresult of Validus’ offer, we will continue to monitor developmentsand could place our ratings on both Validus and Transatlantic onCreditWatch if the offer succeeds.”

In June, New York-based Transatlantic and specialty insurerAllied World Assurance Co, Holdings AG announced a $3.2 billion merger. Whencompleted, Transatlantic shareholders would own 58 percent of thenew company to be renamed TransAllied Group Holdings AG.

The two companies describe the transaction as “a merger ofequals.”

Under Validus’ $3.5 billion offer, the Bermuda-based companywould be the majority stockholder with 52 percent of thecompany.

In response to the offer, Transatlantic issued a statementsaying it was presenting the offer to its board to “carefullyconsider and evaluate” it. It requested that shareholders take noaction at this time and await the board’s recommendation.