NEW YORK, February 15 (FinanceEnquiry.com) - Standard & Poor’s Ratings Services assigned preliminary ratings of 'BB(sf)' and 'B(sf)' to the Series 2012-1 Class A and Class B notes, respectively, to be issued by Mystic Re III Ltd. 

In a research note published on February 13, S&P Rating Services stated that notes, to be issued by Mystic Re III, cover losses from hurricanes and earthquakes on a per-occurrence basis in the covered area. The overall outlook of the transactions' credit risk reflects the counterparty credit ratings of all involved parties that can influence the on-time payment of interest and the final payment of the principal on the notes.
 
The initial ratings on the notes consider the rating on Liberty Mutual Insurance Co. (which will make quarterly premium payments to Mystic Re III), implied ratings on the catastrophe risk ('BB' for the Class A notes and 'B' for the Class B notes) and the rating on the assets in the collateral account (‘AAAm’).
 
RATINGS LIST
Preliminary Ratings Assigned
Mystic Re III Ltd.
Series 2012-1 Class A Notes BB(sf)
Series 2012-1 Class B Notes B(sf)