PLATINUM INITIATES PLAN TO WIN BACK STABLE RATING OUTLOOK

Platinum Underwriters Holdings says it is confident of restoring a stable A financial strength rating with AM Best after the rating agency announced yesterday that the rating is under review with negative implications. AM Best also cut the credit rating of Platinum from BBB+ to BBB and the credit ratings of its reinsurance subsidiaries from A+ to A. The rating agency said the actions had been taken following a review of the company in 2004 and concerns over the fall of Platinum’s risk-adjusted capital as a result of catastrophe losses. Platinum has committed itself to a plan, submitted to AM Best, to strengthen its financial position to a level which will win AM Best’s approval. The rating agency said it would downgrade the company should the plan fail.