Fitch affirms Alterra Capital

Fitch Ratings said it affirmed Alterra Capital Holdings Ltd.'s issuer default rating at A-, along with Alterra USA Holdings Ltd.'s issuer default rating at A- and its $90.6 million 7.2% notes due April 14, 2017 at BBB+.

The affirmations follow the closing of Max Capital Group Ltd.'s stock-for-stock merger with Harbor Point Ltd. Max Capital has been renamed Alterra.

Fitch said it believes this merger has favorably created a more diversified, multi-line reinsurance and insurance company, although the acquisition of Harbor Point creates some execution risk in integrating the two organizations.

The agency said it views the transaction as consistent with Alterra's continuing strategy of diversifying its underwriting risk portfolio while reducing asset risk exposure.

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