OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has downgraded the debt rating to “d” from “c” on the $150 million Series 2008-1, Class A Principal At-Risk Variable Rate Notes (the notes) issued by Newton Re Limited (Cayman Islands). Concurrently, A.M. Best has withdrawn the debt rating.
This rating action reflects the confirmation from the administrator, HSBC Bank (Cayman) Limited, that instead of receiving full payment some note holders of Newton Re Limited accepted an assignment of the collateral by the scheduled redemption date of January 7, 2011. A.M. Best has determined that this constitutes a default, since Newton Re Limited did not meet its financial obligations to security holders when due.
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