Fitch rates Renaissance Financial B

Fitch Ratings said it assigned a B long-term issuer default rating with a stable outlook, B short-term issuer default rating, 5 support rating and "No Floor" support rating floor to Renaissance Financial Holdings Ltd.

The agency revised the outlook to stable from negative for subsidiary Renaissance UK Holdings Ltd. and for Renaissance Capital Holdings Ltd., which owns 50% plus half of a share in Renaissance Financial, and affirmed their long-term issuer default ratings at B and B-, respectively.

Fitch also affirmed the B long-term rating assigned to the $225 million senior unsecured debt due April 2011 issued by Renaissance Securities Trading Ltd. and assigned an RR4 recovery rating to the debt.

The outlook revision reflects Fitch's view that near-term pressure on operating performance should be manageable and the group's markedly lower leverage levels, stronger capitalization compared to pre-crisis metrics and an improving market environment.

At the same time, the agency said the ratings remain constrained by Renaissance Capital's high exposure to market risk, sizeable related-party business, still weak operating profitability and the complex group structure.

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