Moody's rates Scottish Re preferreds Ba1

Moody's Investors Service said it assigned a Ba1 rating to Scottish Re Group Ltd.'s non-cumulative perpetual preferred stock to be issued under its universal shelf.

The outlook for the preferred stock ratings is negative, in line with other Scottish Re ratings.

The proceeds of the preferred stock will be substantially used for general corporate purposes.

Following the issuance of the preferred stock, the financial leverage of the company remains under 20%. Moody's said that Scottish Re's current Baa2 senior unsecured debt rating reflects a number of continued expectations, including the following (1) adjusted financial leverage (debt to capital) will remain under 20%, (2) NAIC RBC will remain above 250% company action level at Scottish Re (U.S.), and (3) interest coverage will be greater than 5 times.

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