S&P keeps PXRE Re on negative watch

Standard & Poor's said that its A- counterparty credit and financial strength ratings on Bermuda-based PXRE Reinsurance Ltd. and U.S.-based PXRE Reinsurance Co. would remain on CreditWatch with negative implications.

S&P also said its BBB- counterparty credit rating on PXRE Group Ltd. and PXRE Corp. also would remain on Watch negative.

The decision to keep the ratings on CreditWatch follows the company's announcement of estimated net Hurricane Wilma losses between $75 million and $90 million, S&P said.

Although the Wilma losses further exacerbate the Hurricane Katrina and Rita losses underlying the $259 million comprehensive loss for the nine months ended September 2005, these losses are offset by the recently consummated issuance of $100 million in common equity and $375 million of series D perpetual preferred shares, S&P said.

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