A.M. Best Assigns Debt Rating to Odyssey Re Holdings Corp.'s Senior N

A.M. Best Assigns Debt Rating to Odyssey Re Holdings Corp.'s Senior Notes

    Business Editors/Financial Editors

    OLDWICK, N.J.--(BUSINESS WIRE)--May 11, 2005--A.M. Best Co. has assigned a debt rating of "bbb" to Odyssey Re Holdings Corp.'s (Odyssey Re) (NYSE: ORH) (New York, NY) proposed issuance of $125 million principal amount of 6.875% senior notes due 2015. Existing debt and shelf ratings of Odyssey Re as well as the financial strength ratings of A (Excellent) for the members of Odyssey Reinsurance Group (ORG) (Delaware) are unchanged. The issuer credit ratings of "a" for ORG, Odyssey America Reinsurance Corporation (Stamford, CT) and Clearwater Insurance Company (Delaware) are also unchanged. Concurrently, A.M. Best has assigned issuer credit ratings (ICRs) of "a" to Hudson Insurance Company (Delaware) and Hudson Specialty Insurance Company (New York). All ratings have a negative outlook.
    Proceeds of the issuance will be used to redeem $110 million principal amount of 4.375% convertible senior debentures due 2022, which are redeemable at Odyssey Re's option beginning on June 22, 2005. Following the issuance, $275 million of availability will remain under Odyssey Re's existing $400 million shelf registration. On a pro forma basis, financial leverage will increase marginally to 20.9%, while the company's fixed charge and cash coverage ratios--ranging between four and six times--will remain within the acceptable range of its rating category. A.M. Best expects Odyssey Re to manage its debt-to-capital ratio below 25% as it issues any additional securities under its shelf registration, and the fixed charge and cash coverage ratios are expected to be maintained through sustained earnings.

    The following senior debt rating has been assigned:

    Odyssey Re Holdings Corp.
    -- "bbb" on $125 million 6.875% senior notes, due 2015

    The following debt ratings are unchanged:

    Odyssey Re Holdings Corp.
    -- "bbb" on $225 million 7.65% senior notes, due 2013
    -- "bbb" on $110 million 4.375% convertible senior debentures,
    due 2022

    The following indicative debt ratings available under a $400 million shelf registration are unchanged:

    Odyssey Re Holdings Corp.
    -- "bbb" on senior unsecured debt
    -- "bbb-" on subordinated debt
    -- "bb+" on preferred shares

    The issuer credit rating of "bbb" is unchanged for Odyssey Re Holdings Corp.

    The issuer credit ratings of "a" are unchanged for the following entities:

--	Odyssey America Reinsurance Corporation
--	Clearwater Insurance Company
--	Odyssey Reinsurance Group

    The issuer credit ratings of "a" have been assigned to the following entities:

    -- Hudson Insurance Company
    -- Hudson Specialty Insurance Company

    The financial strength ratings of A (Excellent) are unchanged for the following members of Odyssey Reinsurance Group:

    -- Odyssey America Reinsurance Corporation
    -- Clearwater Insurance Company
    -- Hudson Insurance Company
    -- Hudson Specialty Insurance Company

    For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit: http://www.ambest.com/ratings.
    For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit: http://www.ambest.com/reinsurance/.

    A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.

--30--MS/ny*

CONTACT: A.M. Best Co. Public Relations: Jim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Striegel, 908-439-2200, ext. 5378 rachelle.striegel@ambest.com or Analysts: Yvonne Bernard, 908-439-2200, ext. 5763 yvonne.bernard@ambest.com or Robert DeRose, 908-439-2200, ext.5453 robert.derose@ambest.com

KEYWORD: NEW YORK NEW JERSEY INDUSTRY KEYWORD: INSURANCE BANKING SOURCE: A.M. Best Co.

Copyright Business Wire 2005