XL Capital Ltd.'s (Cayman Islands) $500 million series C preference shares issued in connection with its Mangrove Bay Pass Through Trust (Bermuda) contingent capital facility have been assigned a debt rating of "bb+" by AM Best Co.

The rating is under review with negative implications.

Concurrently, Best has withdrawn the debt rating of "bb+" on Mangrove Bay's $500 million 6.102 percent trust preferred shares.

These rating actions follow XL Capital's recently announced capital action plan in response to its agreement with Syncora Holdings Ltd., formerly Security Capital Assurance Ltd. (SCA).

On July 29, 2008, Best placed all XL Capital financial strength, issuer credit and debt ratings under review with negative implications. The ratings will remain under review pending the successful completion of the capital action plan followed by Best's assessment of the SCA impact on XL Capital's core business franchise and the containment of any negative effects that may have occurred.