Moody's ups PXRE view to stable

Moody's Investors Service said it has confirmed the Baa1 insurance financial strength rating of PXRE Reinsurance Co. and the Ba2 capital securities ratings of PXRE Capital Trust I.

These actions conclude a review for possible downgrade that was initiated on Sept. 12 following the company's announcement of its initial loss estimates for Hurricane Katrina.

The outlook is stable.

According to Moody's, the confirmation reflects the company's recent capital raising actions, including the issuance in early October of $115 million in common equity and an additional $375 million in perpetual preferred securities, which are expected to convert to common equity on Friday.

The stable outlook reflects PXRE's substantial capital raise and expertise in the catastrophe reinsurance market and Moody's expectation that the company will benefit from significant rate increases in its assumed reinsurance business during 2006.

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