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S&P boosts financial strength, counterparty ratings for Alterra

Posted On: Nov. 16, 2011 12:00 AM CST

HAMILTON, Bermuda—Standard & Poor’s Ratings Services said Wednesday that it has raised its financial strength rating and counterparty rating on Alterra Capital Holdings Ltd.’s core companies.

The New York-based rating agency cited improved operations following the “successfully completed” merger of Max Capital Group Ltd. and Harbor Point Ltd. to form Alterra for increasing its financial strength rating to A from A- and its counterparty credit ratings on Alterra’s holding companies to BBB+ from BBB.

The New York rating agency also revised its previous “positive” outlook to “stable,” reflecting S&P’s belief that the Bermuda reinsurer and insurer’s capital adequacy will remain “very strong” over the next two years.

“Alterra has benefited from a larger and enhanced operating platform and improved diversification by platform, product and account type” since it was established by the merger, S&P Credit Analyst Pablo Feldman said in a statement. He also noted factors such as Alterra’s “strong” enterprise risk management, investments and liquidity.