paying ability rating of `A-' from Duff & Phelps Credit Rating Co..

AFC Re will provide efficient, low-cost reinsurance on spread-based products, servicing traditional life and annuity markets globally. The new rating comes just days after A.M. Best Co. assigned AFC Re a B (Very Good) rating, in part reflecting, its $100-million strong capitalisation under parent AFC Holding Ltd.

Duff & Phelps commented: "As with any startup operation, the rating outlook is less certain than that of a company with an operating history.

"Though AFC Re's business plan appears viable, and the management team appears capable of its effective execution, there are no guarantees the company will be successful in developing its books of business according to plan.'' Duff & Phelps said its rating of AFC Re was based on: The strength of its initial capitalisation of $100 million as a result of a private equity investment; The strategic advantage AFC Re will have in offering reinsurance coverage at a substantially lower cost than its competitors due to its favourable status as a Bermuda corporation; The overall viability of the company's strategic business plan, conservative investment guidelines, strong asset/liability management, absence of debt financing in the capital structure, relatively low-risk product offerings, and low-cost operating structure; and The growing demand for life and annuity reinsurance.