AM Best has downgraded the Bermuda-based reinsurer, Trenwick, which is currently trying to restructure.
AM Best has given Trenwick's operating subsidiaries a 'C' financial strength rating. It has also downgraded the debt ratings of all securities issued by the group to 'c'.
The downgrades follow losses and increases in reserves at Trenwick. Late last year Trenwick won financial backing for its Lloyd's operation and put its London company operation Trenwick International into run-off.
The ratings agency also said the downgrades were due in part to a recent failure to reach agreement with creditors over a $75m senior note obligation.
A statement added: "Trenwick's only operations potentially capable of generating revenue and improving the group's weak financial position."
