Moody's rates Flatiron loans Ba1, Ba2

Moody's Investors Service said it assigned Ba1 ratings to the $380 million senior secured term loan facilities and a Ba2 rating to the $40 million revolving credit facility of Flatiron Re Ltd.

The outlook is stable.

The senior secured credit facilities of Flatiron Re include a $256 million term loan, which was funded at the start of Flatiron Re in December 2005, a $124 million delayed-draw term loan, which was funded recently, and a $40 million revolver, which has yet to be drawn upon.

All facilities mature in December 2010 and are held by financial institutions and other institutional lenders. The facilities are secured by the capital stock of Flatiron Re and are non-amortizing but allow for voluntary prepayments and require mandatory prepayments under certain circumstances.

Moody's stated that Flatiron's ratings reflect an analysis of the structural and contractual features of the Flatiron Re vehicle, as well as probabilistic analysis to determine both the probability of loss and expected severity of loss to both Flatiron Re's debt holders and its sole cedant, Arch Re.

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