Fitch ups Validus subordinated debt to BBB

Fitch Ratings said it affirmed the ratings of Validus Holdings, Ltd., including the senior unsecured debt rating, which was affirmed at BBB+ and the insurer financial strength rating of Validus Reinsurance, Ltd. (Validus Re), which was affirmed at A.

The agency also upgraded Validus' junior subordinated debt to BBB from BBB- due to the application of updated notching criteria for hybrid ratings.

The outlook is stable.

Under the revised criteria, the junior subordinated debt is considered to have 'minimal' non-performance risk. Notching is set two below the issuer default rating based on “poor” recovery expectations, with no additional notching for non-performance. Under prior criteria, a notch was added for non-performance.

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