Standard & Poor’s have published an announcement stating that they have suspended the rating on the recent Queen Street III Capital Ltd. catastrophe bond which provides Munich Re with protection amounting to $150m of their European windstorm risks. The reason for the suspension is the same as the reason that another recent cat bond, Pylon II Capital Ltd. has not yet been rated.
S&P said in the announcement that ‘As a result of an administrative oversight regarding Standard & Poor’s SEC Rule 17g(5)-related processes, we have suspended our rating. We expect to reinstate our ‘B+ (sf)’ rating on the notes on Aug. 19, 2011′. It is the identical explanation for the lack of a rating on EDF’s Pylon II Capital French windstorm deal when it completed (as we noted here).
We’re unsure of the details of the administrative oversight, but it is possible that it is to do with European windstorm insurance-linked securities as both of these transactions cover that type of risk.
We’ll let you know when the rating is announced for Pylon II Capital, expected on the 17th August, and the rating is reinstated on Queen Street III Capital.
Details on these transactions can be found in our catastrophe bond Deal Directory.
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