Credit analysts see no reason - for now, at least - to downgrade the high-profile $2.1 billion Ballantyne Re securitization, despite the fact that the issuing entity, Scottish Re, suffered a series of downgrades that reduced its counterparty credit rating to junk status and its stock price is languishing at yearly lows.

All three major credit rating agencies weighed in on the transaction when it priced in late April. The proceeds from the transaction allowed Scottish Re, to meet capital requirements under Regulation XXX. Ballantyne Re priced in late April, with Lehman Brothers acting as lead manager.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.