AM Best has downgraded the debt rating of Trenwick Group's US holding company, Trenwick America Corporation, to 'D' from 'C'. The move means the insurer has defaulted on the repayment of $75m (£47.8m) of debts.
The move relates to Trenwick's $75m (£47.8m) senior notes debt. The rating provides an opinion on the insurer's ability to meet its financial obligations to its creditors.
These rating actions follow Trenwick's recent announcement that it defaulted on its senior notes debt arrangement.
Trenwick is in negotiations with the debt holders to extend the maturity date until 1 August, 2003.
