Axis Capital Holdings Ltd. has received a ratings boost from Standard & Poor's Ratings Services for a new notes issue.

S&P said it had assigned a "BBB+" senior debt rating to Bermuda-based AXIS Capital Holdings Ltd.'s $500 million, 5.75 percent senior notes, which are due in 2014.

S&P also affirmed its "BBB+" counterparty credit rating on AXIS Capital and its "A" financial strength ratings on AXIS Specialty Ltd. and AXIS Capital's other interactively rated subsidiaries. The outlook on all these companies is stable.

The notes issue, which Axis announced earlier this month, is part of the company's $2.4 billion universal shelf registration, filed on Aug. 6, 2004.

AXIS' overall ratings are based on its "seasoned management, very strong capital adequacy, very strong operating results, good risk management, and very strong balance sheet," S&P said. "Partially offsetting these factors are AXIS's relatively short track record and high-risk coverages."

S&P noted that through the first nine months of 2004, AXIS had a combined ratio of 86.4 percent despite $227 million in net hurricane losses in the third quarter of 2004.

"Capital adequacy has declined because of continued growth in premium writings but remains very strong, with an estimated capital adequacy ratio of 160 to 170 percent as of June 30, 2004," S&P said.

Commenting on the company's future outlook, S&P indicated that it "expects AXIS to continue to generate very strong average operating returns, though results in any period are subject to volatility from large losses. Capital adequacy is expected to remain very strong, and financial leverage is not expected to exceed 15 percent over the medium term."