Fitch Ratings has downgraded the long-term rating of RenaissanceRe and the rating on its senior unsecured notes to 'BBB+' from 'A-'.
Fitch said it has also downgraded its rating on RenRe's preferred stock to 'BBB' from 'BBB+' and its insurer financial strength rating on RenRe's lead operating subsidiary, Renaissance Reinsurance, to 'A' from 'A+'.
The agency said the ratings have been removed from rating watch negative and that the rating outlook is negative.
Fitch said its actions reflected its concerns about RenRe's management continuity, operational focus and market position.
The rating actions follow yesterday's announcement that RenRe's chairman and chief executive, James Stanard, had resigned. Fitch said it has historically viewed Stanard's contributions as an integral part of RenRe's success.
The negative outlook also reflects ongoing uncertainty surrounding the ultimate resolution and potential for fines or settlement costs related to an ongoing investigation being conducted by the Securities and Exchange Commission (SEC) and the SEC's issuance of a Wells Notice to the company.
Fitch had originally placed its ratings on RenRe on Rating Watch Negative on 26 July after the company announced that Stanard had received a Wells Notice from the SEC.
On 27 September, RenRe announced that the company had received a Wells Notice that Fitch believes is likely to be similar in nature to the one received by Stanard.