A.M. Best Co. has assigned a debt rating of “bbb-” to the $400 million 6.875% Series C preferred shares of AXIS Capital Holdings Limited (AXIS) (Hamilton, Bermuda) [NYSE: AXS]. The assigned outlook is positive.
The proceeds from the issuance will be used by AXIS to repurchase its Series B preferred securities that are tendered and a portion of its Series A preferred securities. The actions taken by AXIS regarding its preferred securities do not have a significant impact on the organization’s overall capital structure as it relates to the company’s ratings, and A.M. Best remains comfortable with all aforementioned ratings.
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. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Understanding Universal BCAR”; “Catastrophe Analysis in A.M. Best Ratings”; and “A.M. Best’s Ratings & the Treatment of Debt.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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