Fitch Ratings has assigned Flagstone Reinsurance Limited and Flagstone Reassurance Suisse SA 'A-' insurer financial strength ratings.

It has also assigned Flagstone Reinsurance Holdings Limited (FSR) a 'BBB+' issuer default rating. The rating outlook is stable.

In its report Fitch mentioned that the ratings reflect Flagstone's capital strength, well-designed risk management practices and operating platforms, and the capabilities of the company's experienced management team.

Newcomer Flagstone Re made a 2007 first quarter profit of $35.6m on gross written premiums of $207m.

The Bermuda-based reinsurer noted that under Fitch's capital model methodology, Flagstone's capital adequacy exceeds that required for an 'A-' rating by a significant margin.

Flagstone chairman Mark Byrne said: "One of our key financial goals is to obtain and maintain multiple credit ratings at the A level. These ratings from Fitch on both our Bermuda and Swiss operating companies, represent significant progress towards that goal."