TEXT-Fitch affirms Flagstone's ratings following Validus merger

Tue Dec 4, 2012 3:20pm EST

Dec 4 - Fitch Ratings today removed the ratings of Flagstone Reinsurance
Holdings, S.A. and subsidiaries (collectively Flagstone) from Rating
Watch Evolving and affirmed them at their current levels. The Rating Outlook is
Positive. A full list of rating actions is included at the end of this release.

Today's ratings actions follow the completion of Flagstone's acquisition by
Validus Holdings, Ltd. (Validus). The transaction was originally
announced on Aug. 30, 2012 and closed on Nov. 30, 2012.

The rating affirmation and Positive Rating Outlook reflects Fitch's previously
announced indication that if the transaction were to close as planned, the
agency would bring Flagstone's ratings in line with Validus' ratings.

Fitch has removed the following ratings from Rating Watch Evolving and affirmed
them with a Positive Rating Outlook:

Flagstone Reassurance Suisse SA:
--Insurer Financial Strength at 'A-'.

Flagstone Reinsurance Holdings, S.A.
--Long-term Issuer Default Rating (IDR) at 'BBB+';
--$120 million of floating rate subordinated debentures due Sept. 15, 2036 at
'BB+';
--Euro13 million of floating rate subordinated debentures due Sept. 15, 2036 at
'BB+';
--$25 million of floating rate subordinated debentures due Sept. 15, 2037 at
'BB+'.

Flagstone Finance S.A.
--Long-term IDR at 'BBB+';
--$100 million of floating rate subordinated debentures due July 30, 2037 at
'BB+'.

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Insurance Rating Methodology' (Oct. 18, 2012).

Applicable Criteria and Related Research:
Insurance Rating Methodology - Amended
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