Best Co. rating of of "A-'' (Excellent).

Best said the rating reflects Latin American Re's excellent initial capitalisation and ownership by Exel Ltd. and Risk Capital Re.

The rating is also a reflection of the company's experienced executive and underwriting teams, management's previous success in the Latin American reinsurance environment and A.M. Best's expectation that Latin American Re will continue its strong relationships in Latin America and South America.

A.M. Best believes Latin American Re's market relationships -- which were initiated through prior experiences of management -- and the Exel and Risk Capital Re sponsorship and board representation will be the foundation of the one year old company's future success.

The rating also reflects uncertainties associated with the company's brief track record.

Best said that maintaining the "A-'' (Excellent) rating will depend on the reinsurer's successful execution of its business plan and marketing strategy, as well as further improvement in its leverage and liquidity position through operating profits.