S&P places Validus on watch

S&P said it placed its ratings for Validus Reinsurance Ltd.’s A+ issuer rating on CreditWatch with negative implications. Validus Holdings Ltd.'s $199 million of 8.875% senior notes due 2040, which are guaranteed by AIG, are not included in the CreditWatch action.

Parent American International Group, Inc. plans to sell Validus to RenaissanceRe Holdings Ltd. The agency affirmed its AIG ratings. The deal is expected to close in the fourth quarter of 2023

“The rating action on Validus reflects our revised view of its group status as nonstrategic to its ultimate parent, AIG, from core. The rating action follows AIG's announcement on May 22 that it has agreed to sell Validus for $2.985 billion to RenaissanceRe Holdings Ltd. (A-/stable/--).,” S&P said in a statement.

The agency said it plans to resolve the negative watch after the close of the transaction.

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