S&P upgrades Maiden to stable outlook

Rating agency Standard & Poor’s (S&P) has revised its outlook of Bermuda-based Maiden to stable.

At the same time S&P said that it had affirmed its 'BBB+' financial strength ratings on Maiden Reinsurance North America, Maiden Reinsurance and its 'BBB-‘ counterparty credit ratings for Maiden Holdings and Maiden Holdings North America.

The rating agency explained that the stable outlook reflects its view that Maiden will maintain its capital adequacy and continue to reduce its financial leverage position.

S&P also placed 'BBB+' long-term counterparty credit and financial strength ratings on Maiden Speciality Insurance with negative implications, following the announcement of a contract to sell the inactive subsidiary to Clear Blue Financial.

The transaction should be completed by the end of the year, subject to regulatory and other approval and the credit watch status should be resolved after this.

Neil Stein, S&P credit analyst, said: "The ratings reflect our view of the company's satisfactory business risk profile and upper adequate financial risk profile built on its adequate competitive position and strong capital and earnings.”