Fitch rates Swiss Re convertibles

Fitch Ratings said it assigned Swiss Reinsurance Co. a long-term issuer rating of AA+, reflecting the pari passu nature of policyholder and senior unsecured obligations at the Swiss reinsurer. At the same time, Fitch has affirmed Swiss Re's and its subsidiary, Reassure America Life Ins. Co.'s, insurer financial strength ratings at AA+.

The outlook is stable.

Fitch has also assigned an AA rating to the €672 million mandatory convertible security due July 2007. The issue is guaranteed on an unconditional, unsecured and unsubordinated basis by Swiss Re.

Fitch said the ratings of Swiss Re reflect the group's premiere franchise as a leading global reinsurer, very strong capitalization, excellent financial flexibility and conservative reserving practices.

Partially offsetting these strengths is Fitch's belief that current earnings, although much improved in volume and quality, are not supportive of the current rating. Neither does Fitch believe that this will change over the longer term.

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