Last year's storms continue to take their toll, with leading ratings agency AM Best yesterday saying it was putting Platinum Underwriters financial strength ratings under review and downgrading the company's issuer credit rating.

The Bermuda-based company's reinsurance subsidiaries have seen their financial strength rating of A (Excellent) put under review with negative implications, meaning it could face a downgrade.

Concurrently, Best has downgraded the issuer credit rating of the reinsurance subsidiaries to "a" from "a+" and of Platinum to "bbb" from "bbb+".

Ratings assigned to the company's existing equity security units, as well as securities available under the company's current shelf offering, have also been downgraded.

All debt ratings are also remain under review with negative implications.

Best said it took its actions after its year-end review of Platinum "and its determination that the risk-adjusted capital position of the group has declined more than originally estimated from prior year levels due to the losses recognised from the southeast wind storms in 2004 and the resulting increase to the group's operating leverage".

Platinum Underwriters Bermuda, Ltd., which assumes a significant amount of business from the group's other operating companies, has realised a disproportionate reduction in its risk-adjusted capital position.

Platinum has provided Best with a plan to strengthen ? in the near term ? the financial position of the overall group as well as that of Platinum Bermuda.

Should this plan be executed successfully, Best said it expected that the A (Excellent) financial strength rating will be affirmed with a stable outlook.

But if management is unable to successfully complete this plan in the near term, the A (Excellent) rating of Platinum Bermuda will likely be downgraded and all other ratings and rating outlooks will be reevaluated.