Moody's rates RenaissanceRe notes A3

Moody's Investors Service said it assigned an A3 rating with a negative outlook to $300 million of 10-year 3.7% senior notes issued by RenaissanceRe Finance Inc. and guaranteed by RenaissanceRe Holdings Ltd.

The note proceeds are being used to fund the acquisition of Platinum Underwriters Holdings Ltd., which closed on March 2.

The agency said the rating reflects the group's market leadership in property catastrophe reinsurance, good capital adequacy, profitable track record, superior customer service, strong risk management culture and a long history of using joint ventures and other forms of soft capital to meet client needs.

However, these strengths are tempered by the group's high business concentration in the very competitive property catastrophe reinsurance market (about half of total premiums, pro forma for Platinum acquisition) and its overweight exposures in the United States (over 60% of pro forma premiums) – notably Florida, Moody’s said.

The rationale for the negative outlook is that Moody’s remains circumspect about the benefits of the Platinum acquisition to creditors.

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