Fitch affirms Flagstone Re

Fitch Ratings said it affirmed Flagstone Reinsurance Holdings, Ltd.'s long-term issuer default rating at BBB+ and its $120 million floating-rate subordinated debentures due Sept. 15, 2036, €13 million floating-rate subordinated debentures due Sept. 15, 2036 and $25 million of floating-rate subordinated debentures due Sept. 15, 2037 at BBB-.

The agency also affirmed Flagstone Finance SA's long-term issuer default rating at BBB+ and its $100 million of floating-rate subordinated debentures due July 30, 2037 at BBB-.

The ratings were removed from Rating Watch negative, and the outlook is stable.

Fitch said the rating actions reflect its view that Flagstone is no longer actively pursuing the acquisition offer it made to IPC Holdings, Ltd. on July 1. IPC has approved a definitive amalgamation agreement with Validus Holdings, Ltd.

The agency placed the ratings on Rating Watch negative on July 6 due to concerns about how a combination of Flagstone's and IPC's insured portfolios would affect the combined entities' risk-adjusted capitalization.

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