Moody's rates Concord Re loan Ba2

Moody's Investors Service said it assigned a definitive Ba2 rating to the $365 million senior secured term loan facility due 2012 of Concord Re Ltd. The outlook is stable.

The agency said the Ba2 rating for the senior secured term loan facility is supported by Concord Re's capitalization level relative to its loss exposure, a balance sheet that is unencumbered by legacy exposures and certain structural characteristics that are designed to offer protection to debtholders during the wind-down period.

These fundamental strengths are tempered by Concord Re's relatively high debt leverage profile (50% debt to total capital) and parameter risk in the modeling assumptions that form the basis of the company's capitalization, Moody's said, particularly assumptions regarding attritional (non-catastrophe) loss ratios.

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