A.M. Best Co. has removed from under review and affirmed the financial strength rating of A- and issuer credit ratings ?a-? for the reinsurance subsidiaries of the PXRE Group Ltd.

Best also removed from under review and affirmed the issuer credit rating of ?bbb-? and all existing debt ratings of PXRE, and assigned indicative debt ratings of ?bbb-? to senior unsecured debt, ?bb+? to subordinated debt and ?bb? to preferred stock that can be issued under PXRE?s recently filed $700 million universal shelf registration.

The affirmation follows a review of PXRE?s capitalisation action plan after incurring losses from hurricanes Katrina, Rita and Wilma, Best said.

PXRE?s plan includes both a reduction in the company?s risk profile and addition to capital including the issuance of risk linked securities providing coverage for a significant catastrophic event and a potential second catastrophic event.

The total additional risk capital that PXRE has raised in the fourth quarter now stands at $1 billion.

The combination of these actions has stabilised PXRE?s current ratings, Best said. The agency has however assigned a negative outlook to the ratings until the new strategies and risk mitigation procedures have been fully tested.

A.M. Best will monitor the effectiveness of the new strategies and procedures with each catastrophic event.