S&P lowers PartnerRe

Standard & Poor's said it lowered its counterparty credit and financial strength ratings on PartnerRe Ltd.'s operating subsidiaries by one notch to A+ from AA-. At the same time, the agency said it lowered the counterparty credit and senior debt ratings on the ultimate holding company, PartnerRe Ltd., by one notch to A- from A.

The agency said it also lowered the preferred stock rating on PartnerRe Ltd. by one notch to BBB from BBB+. The outlook is stable.

"The downgrade reflects lower-than-expected operating results reported by the company in 2011," said S&P credit analyst Laline Carvalho in a news release.

According to S&P, although the group's incurred catastrophe losses in 2011 were within management's stated tolerances for its lines of business and different regions, they highlighted the group's exposure to moderate to high earnings and capital volatility, which the agency believes is more in line with peers rated A+.

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