Standard & Poor Downgrades Ariel Re
Ratings agency Standard & Poor’s downgraded Bermuda’s Ariel Re following the announcement the firm was selling off its Hamilton-based reinsurance business to Arrow, a unit of investment bank Goldman Sachs, and its trade credit and surety [C&S] operations, which are based in Zurich, to Bermuda-based Arch Capital Holdings.
SP&P analysts said the remaining Ariel Re entity will have “substantially reduced internal underwriting operations, a smaller capital base, less managerial resources, a reduced enterprise risk management framework, and limited ability to raise capital from third parties.”
As a result, S&P has placed the ‘A-’ ratings on Ariel Re on CreditWatch with negative implications.
