A.M. Best Assigns Ratings to Max Specialty Insurance Company and to Max USA Holdings Ltd.'s Senior Unsecured Notes

  
    
  
  
    
      A.M. Best Co. has assigned a financial strength rating (FSR) of 
      A- (Excellent) and an issuer credit rating (ICR) of “a-” 
      to Max Specialty Insurance Company (MSIC) (Delaware). 
      Concurrently, A.M. Best has assigned a debt rating of “bbb-” 
      to MSIC’s immediate parent company Max USA 
      Holdings Ltd.’ s (MUHL) (Delaware) $100 
      million 7.20% senior unsecured notes due April 2017. The outlook for all 
      ratings is stable.
    
    
      The acquisition of MSIC and the formation of MUHL by their ultimate 
      parent company, Max Re Capital Ltd. (MXRE) (Bermuda) [NASDAQ: 
      MXRE], expand MXRE’s 
      operations into the U.S. excess and surplus lines market. MSIC will 
      offer property, inland marine, casualty, excess liability and umbrella 
      insurance products.
    
    
      MSIC’s ratings reflect solid capitalization, a 
      sound business plan and a strong management team. In addition, MSIC 
      meets A.M. Best’s previously established 
      requirements for new company formations.
    
    
      The debt rating of MUHL’s senior notes is 
      based on the full and unconditional guarantee of MXRE, with proceeds of 
      the sale repaying short-term borrowings that had been used to capitalize 
      MSIC. Under the terms of the offering document, at its option, MUHL or 
      MSIC may redeem all or part of the senior notes at any time at greater 
      than 100% of the principal amount or the sum of the present values of 
      the remaining scheduled principal and interest payments. Following the 
      transaction, MXRE’s consolidated 
      debt-to-adjusted capital will be approximately 10%, and fixed charge 
      coverage is expected to remain in excess of 18 times.
    
    
      For Best’s Debt Ratings, all other Best’s 
      Ratings, an overview of the rating process and rating methodologies, 
      please visit www.ambest.com/ratings.
    
    
      Founded in 1899, A.M. Best Company is a full-service credit rating 
      organization dedicated to serving the financial services industries, 
      including the banking and insurance sectors. For more information, visit www.ambest.com.