Standard & Poor's Ratings Services has affirmed its BBB- counterparty credit ratings on Bermuda-based insurer Max Capital Group Ltd. and Max USA Holdings Ltd. The outlook on both companies remains positive.

"The counterparty credit rating on Max Capital reflects its good competitive position as a diversified insurance and reinsurance company, its strong underwriting performance, and its adequate enterprise risk management," explained credit analyst Pablo Feldman.

"Weaknesses include Max Capital's limited scale and market presence, diminishing capital adequacy, and concentration within Fortune 1000 accounts, which is diminishing with the expansion of the US excess and surplus business and Lloyd's presence."

S&P also said the rating is based on Max Capital's low leverage, good financial flexibility, and flexible dividend-paying capacity with its Bermuda domicile. These characteristics will remain consistent in the next few years, S&P said. Max Capital's financial flexibility, like its peers', is slightly limited because of the current financial market disruption.