A.M. Best hasaffirmed the Financial Strength Rating of B+ (Good) and the Long-Term IssuerCredit Rating of "bbb-" of BTG Pactual Resseguradora S.A. (BTG Re) (Brazil). Theoutlook of these Credit Ratings (ratings) remains negative.

Theratings of BTG Re reflect its strong risk-adjusted capitalization and short butsuccessful operating performance. BTG Re is a local reinsurer in Brazil,operating in the surety segment with plans to expand geographically and by lineof business. The company's parent, Banco BTG Pactual SA (BTG Pactual), has provided capitalsupport as well as operational and risk management capabilities.

Alsoreflected in the ratings is the impact of the credit profile of BTG Re'sultimate parent, Banco BTG Pactual S.A., and the challenging macroeconomic and(re)insurance conditions still being experienced in Brazil. While the creditprofile of BTG Pactual has begun to stabilize A.M. Best believes therepotentially could be an adverse impact on the operations of BTG Re.Nonetheless, BTG Re maintains solid stand-alone attributes in terms ofoperating performance and risk-adjusted capitalization. BTG Re has been able toproduce positive overall earnings since inception, driven by investment incomeand complemented by underwriting results. BTG Re also benefits from a solidretrocession program that mitigates much of its underwriting exposures.