Moody's cuts Swiss Re

Moody's Investors Service said it downgraded by one notch the insurance financial strength rating and long-term debt ratings of Swiss Reinsurance Co. and its various guaranteed and non-guaranteed subsidiaries. Swiss Re's short-term rating of Prime-1 was affirmed.

All ratings have a stable outlook.

Commenting on the rating changes, Moody's said that the rating action for Swiss Re reflects Moody's views about the balance of risk and reward for reinsurers generally, which strongly influences Moody's expectations about the company's prospective operating profitability, both in terms of amount and volatility. Moody's also noted Swiss Re's ability to organically regenerate capital more appropriately positions it at the Aa2 level, within the peer group of large global financial institutions.

Moody's said the rating also considers Swiss Re's numerous strengths. With its very strong business diversification, both geographically and by line of business, Swiss Re has an outstanding franchise and is excellently positioned to benefit from a "flight to quality" in the global reinsurance industry from its leading position as the largest life reinsurer and second-largest non-life reinsurer.

Among the ratings downgraded were Swiss Re America Holding Corp.'s guaranteed senior debt rating to Aa2 and guaranteed subordinated debt rating to A1.

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