Moody's Investors Service has placed the 'Baa1' senior debt rating of XL Capital and the 'A1' IFS ratings of XL's insurance operating subsidiaries on review for possible downgrade after XL acted to increase capital, according to today’s Moody’s release.

XL said yesterday it has entered an agreement with Security Capital Assurance (SCA) to terminate all outstanding contracts including the excess of loss and facultative reinsurance agreements between the two for $1.775 billion in cash, the issuance of 8 million shares of XL common stock and the transfer of XL's 46% stake in SCA to a trust for the exclusive benefit of XLCA and XLFA. 

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.