Standard & Poor’s Cuts Hannover RE Ratings
New York, April 15 - Standard & Poor's Ratings Services said it lowered its long-term counterparty credit and insurer financial strength ratings on Germany-based reinsurer Hannover Ruckversicherungs AG (Hannover Re) and other core members of the Hannover Re group to 'AA-' from 'AA'. At the same time, all ratings were removed from CreditWatch, where they had initially been placed on Oct. 29, 2002. The outlook on all entities is negative. In addition, Standard & Poor's lowered its long-term subordinated debt ratings on the EUR350 million notes issued by Hannover Finance (Luxembourg) S.A. and guaranteed by Hannover Re, and on the $400 million notes issued by Hannover Finance Inc. and guaranteed by Hannover Re, to 'A' from 'A+'. The ratings were removed from CreditWatch, where they had been placed on Oct. 29, 2002. "The downgrade reflects concerns over Hannover Re's quality of capital, including the group's high exposure to reinsurance recoverables and constrained financial flexibility (defined as a company's ability to source funds relative to its capital needs)," said Standard & Poor's credit analyst Simon Marshall. The ratings continue to be supported by Hannover Re's strong capitalization, very strong operating performance relative to peers, strong management team, and very strong business position.
Published on April 15, 2003
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