20 March 2015News

Goldman Sachs vehicle on review for upgrade

Goldman Sachs Bermuda-based vehicle Arrow Re has been placed on review for an upgrade by rating agency Moody’s.

Moody’s said the rating action follows the placement of Goldman Sachs on review for an upgrade.

Arrow Re allows Goldman Sachs to offer its clients risk transfer solutions in reinsurance form. It is currently rated at baa1, consistent with the rating of Goldman Sachs' baseline credit assessment.

“The review for upgrade of Arrow Re's IFS rating reflects the essential role that parental support plays in Arrow Re's rating. Moody's noted that Arrow Re's ratings are currently at parity with Goldman Sachs' senior debt rating,” said the rating agency.

The review will consider whether or not this relationship should be maintained going forward, in light of Moody's new bank rating methodology.

The review will also consider the extent to which the recent addition of a supplemental keepwell agreement, from another Goldman Sachs subsidiary, may provide additional support for Arrow Re.