S&P rates IPC Holdings convertibles BBB-

Standard & Poor's said it assigned its BBB- preferred stock rating to IPC Holdings Ltd.'s $236.3 million series A mandatorily convertible preferred shares and placed the rating on CreditWatch with negative implications.

The BBB+ counterparty credit rating and the A+ counterparty credit and financial strength ratings on IPCRe Ltd. and IPCRe Europe Ltd. (collectively referred to as IPCRe) remain on CreditWatch negative.

The ratings are on CreditWatch negative because of the uncertainty about the group's losses relating to Hurricane Katrina, given the very early stages of the actual claim-adjusting process, S&P said.

S&P said it is concerned that based on current estimates, claims will deplete a significant portion (more than three years of earnings) of the group's capital.

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