Concurrently, A.M. Best has downgraded the debt rating of the group's U.S. holding company, Trenwick America Corporation, to "d" from "c" relating to its $75 million 6.7% senior notes, which was due on April 1, 2003. All debt ratings have also been withdrawn. (See list below.)
These rating actions follow the company's announcement that it defaulted on senior notes due April 1, 2003. Trenwick is in negotiations with the senior note holders to extend the maturity date on these notes until August 1, 2003, and it has in fact reached an agreement in principal in this regard. The financial strength rating of Trenwick America Reinsurance Corporation had previously been downgraded to C (Weak) from B- (Fair) on February 3, 2003. At that time, the ratings for all the runoff operations of the company were withdrawn, and the company's debt ratings were all downgraded to "c".
The following debt rating of "c" has been downgraded to "d" and then withdrawn:
Trenwick America Corporation--
-- $75 million 6.7% senior notes, due 2003
(guaranteed by Trenwick Group, Ltd.)
The following debt ratings of "c" have been withdrawn:
Trenwick America Corporation--
-- senior unsecured debt under shelf registrationTrenwick Capital Trust I--
-- $110 million 8.82% subordinated capital securities, due 2037LaSalle Re Holdings--
-- $75 million Series A preferred shares
The following indicative debt ratings of "c" have been withdrawn:
Trenwick Group Ltd.--
Securities available under shelf registration:
-- senior unsecured debt
-- subordinated debt
-- preferred stockTrenwick America Capital Trust I, II and III--
-- preferred securities
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com .