Standard & Poor's yesterday raised its counterparty credit ratings on Bermuda-based reinsurer Everest Re Group Ltd. and Everest Reinsurance Holdings Inc. to A- from BBB+.

The outlook is stable.

"The upgrade, or the narrowing of the notching between the ratings on the holding companies and the ratings on the operating companies to two rather than three notches, stems from Everest's modest financial leverage, strong interest coverage, and substantial liquidity and marketable assets held at the holding companies," said Taoufik Gharib, an S&P credit analyst, in a statement.

At the same time, S&P affirmed Everest's A+ financial strength rating.