AM BEST WEIGHS DOWNGRADE OF MAIDEN'S RATINGS

AM Best has placed the ratings of Maiden Holdings and its subsidiaries under review with negative implications. The move follows the sale of the renewal rights to its US treaty reinsurance business to TransRe, announced yesterday. Maiden also indicated it was in "advanced discussions" to sell its North American affiliate. The rating agency is weighing a downgrade of the A- (excellent) financial strength ratings and the a- long-term issuer credit ratings of Maiden Reinsurance and its Maiden Reinsurance North America affiliate. It is also placed under review the bbb-long-term issuer credit rating of parent Maiden Holdings and its Maiden North America subsidiary. In announcing the reviews, AM Best cited the "uncertainty for potential future transactions and their successful completion, the still unresolved renewal of Maiden’s reinsurance agreement with AmTrust Financial Services, and the ultimate performance of the reserves assumed from AmTrust".