Fitch upgrades Validus

Fitch Ratings said it upgraded Validus Holdings, Ltd.'s issuer default rating to A- from BBB+, $250 million of 8 7/8% senior unsecured notes due 2040 to BBB+ from BBB, $150 million of 9.07% junior subordinated deferrable debentures due June 2036 to BBB- from BB+ and $140 million of 8.48% junior subordinated deferrable debentures due June 2037 to BBB- from BB+.

The outlook is stable.

The agency also said it upgraded Flagstone Reinsurance Holdings, SA's $120 million of floating-rate subordinated debentures due Sept. 15, 2036 to BBB- from BB+, €13 million of floating-rate subordinated debentures due Sept. 15, 2036 to BBB- from BB+ and $25 million of floating-rate subordinated debentures due Sept. 15, 2037 to BBB- from BB+.

Flagstone Finance SA's long-term issuer default rating also was upgraded to A- from BBB+ and $100 million of floating-rate subordinated debentures due July 30, 2037 to BBB- from BB+.

The upgrades reflect the company's solid operating performance and internal capital generation since its inception in late 2005, Fitch said.

While the company's underwriting performance is volatile, it does compare favorably to other property catastrophe reinsurers rated by the agency.

Validus has produced an operating and underwriting profit in each year of its existence, Fitch said.

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