MXRE Max RE Capital Ltd. (MM)

A.M. Best Co. has assigned a financial strength rating (FSR) of A- (Excellent) and an issuer credit rating (ICR) of �a-� to Max Specialty Insurance Company (MSIC) (Delaware). Concurrently, A.M. Best has assigned a debt rating of �bbb-� to MSIC�s immediate parent company Max USA Holdings Ltd.� s (MUHL) (Delaware) $100 million 7.20% senior unsecured notes due April 2017. The outlook for all ratings is stable. The acquisition of MSIC and the formation of MUHL by their ultimate parent company, Max Re Capital Ltd. (MXRE) (Bermuda) [NASDAQ: MXRE], expand MXRE�s operations into the U.S. excess and surplus lines market. MSIC will offer property, inland marine, casualty, excess liability and umbrella insurance products. MSIC�s ratings reflect solid capitalization, a sound business plan and a strong management team. In addition, MSIC meets A.M. Best�s previously established requirements for new company formations. The debt rating of MUHL�s senior notes is based on the full and unconditional guarantee of MXRE, with proceeds of the sale repaying short-term borrowings that had been used to capitalize MSIC. Under the terms of the offering document, at its option, MUHL or MSIC may redeem all or part of the senior notes at any time at greater than 100% of the principal amount or the sum of the present values of the remaining scheduled principal and interest payments. Following the transaction, MXRE�s consolidated debt-to-adjusted capital will be approximately 10%, and fixed charge coverage is expected to remain in excess of 18 times. For Best�s Debt Ratings, all other Best�s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.