A.M. Best Co. announced it has assigned a debt rating of "a+" to the recently issued Euro 500 million 6.625 percent subordinated fixed to floating rate callable loan notes, due 2042 (and callable in September 2022 as well as on any semi-annual variable interest payment date thereafter) issued by Swiss Reinsurance Company (Swiss Re) (Switzerland) on July 9.

The assigned outlook is stable.

As a result of this debt issuance, Swiss Re's unadjusted financial leverage is projected to be in the high teens and remains fully supportive of its current rating level. Fixed charge coverage also is expected to remain strong and in line with historical earnings performance. Swiss Re intends to utilize the proceeds for general corporate purposes.

The debt rating reflects Swiss Re's global profile in the reinsurance market, strong risk-adjusted capitalization and robust risk management program. Somewhat offsetting these strengths is Swiss Re's exposure to catastrophic losses, which diminishes operating results in particular years.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides an explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: "Insurance Holding Company and Debt Ratings"; "Understanding BCAR for Property/Casualty Insurers"; "Natural Catastrophe Stress Test"; "Risk Management and the Rating Process for Insurance Companies"; and "Understanding Universal BCAR." Best's Credit Rating Methodology can be found at ambest.com/ratings/methodology.

A.M. Best Company is an insurance rating and information source.

More information:

www.ambest.com

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