OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a debt rating of “bbb-” to the $115 million 7% fixed senior unsecured notes due 2025 recently issued by Third Point Re (USA) Holdings, Inc. (Wilmington, DE). The assigned outlook is stable. Third Point Reinsurance Ltd (TPRE) (Bermuda), the parent company of Third Point RE (USA) Holdings, is the guarantor of the senior notes. All existing ratings of TPRE and its subsidiaries are unchanged.
The proceeds from this debt issuance are expected to be used for the capitalization of Third Point Reinsurance (USA) Ltd. (TPRUSA) (Bermuda). The financial leverage and coverage measures of the company remain within A.M. Best’s guidelines for the assigned rating.
The rating takes into consideration TPRE’s operating subsidiaries’ current financial strength rating of A- and the issuer credit ratings of “a-” and the adequacy of cash flows at TPRUSA available to be transferred as dividends to service the debt.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Analyzing Insurance Holding Company Liquidity
- Insurance Holding Company and Debt Ratings
- Risk Management and the Rating Process for Insurance Companies
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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