Bermuda-based financial guaranty reinsurer BluePoint Re Limited, got a thumbs up from ratings agency Standard & Poor?s yesterday. In a Press statement, S&P said it had assigned an ?AA? financial strength, counterparty credit, and financial enhancement ratings to the company, with a ?stable? outlook, indicating that the rating is unlikely to change in the near term.The ?AA? ratings were said to be based on ?BluePoint?s strong capital position, prudent underwriting and risk management guidelines, and strong operating support?. An additional plus point was said to be oversight by the group?s owner, Wachovia Corp.BluePoint is a Bermuda domiciled, de novo financial guarantee reinsurance company.

It is owned by BluePoint Holdings Limited, which, in turn, is owned by Wachovia Corp. BluePoint is capitalised with $300 million of capital.

S&P credit analyst Richard Smith said: ?The ratings are consistent with Standard & Poor?s current assessment that monoline financial guarantee reinsurers should be rated no higher than ?AA? until they can demonstrate an ability to successfully avoid the adverse selection, lower return, and slower growth that differentiates this industry from the primary bond insurers. The stable outlook reflects BluePoint Re?s solid capital position, the strong operating support and oversight from its financially strong owner, and Standard & Poor?s expectation for prudent underwriting and risk management.?BluePoint will provide treaty and facultative reinsurance capacity to the primary monoline bond insurers. A small component of the business plan calls for the company to provide reinsurance directly to Wachovia in the form of credit default swaps. The company expects a balance of treaty andfacultative business with an emphasis on structured finance.