Verdant Rock Limited, a Bermuda-based insurer regulated by the Bermuda Monetary Authority (BMA), has been assigned a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook by Fitch Ratings, effective 12 June 2026. The rating, combined with the company's Class 3B Insurer license from the BMA obtained on 6 May 2026, enables Verdant Rock to provide irrevocable, unconditional, on-demand financial guarantees for bonds and loans in emerging markets. These guarantees are designed to qualify as eligible credit protection under Basel and major insurance solvency regimes, targeting private liabilities including corporate and bank debt, structured financings, asset-backed securities, mortgage-backed securities, and project finance. The company does not cover sovereigns, municipalities, or provinces.
Co-Founder and Chief Executive Officer Tolga Uzuner highlighted the significance of the rating, stating, 'The infrastructure and capital markets we are targeting have been systematically underserved over the past decade. Verdant Rock enters this space with an investment grade rating, a strong capital position, the regulatory standing, the technical capability, and the long-term commitment that issuers and their advisers have been unable to find elsewhere.' The Fitch Ratings report is accessible here, and the BMA license can be verified via the regulator's register of regulated entities by searching 'Verdant Rock'.
This development positions Verdant Rock to address a gap in the market for investment-grade guarantee providers focused exclusively on emerging market private sector obligations. The company's Basel III and Solvency II compliant guarantees offer banks and institutional investors a mechanism to reduce capital requirements while gaining exposure to higher-yielding emerging market assets. The stable outlook reflects Fitch's expectation that Verdant Rock will maintain strong capitalization and gradually build its guarantee portfolio. For further background on the licensing announcement, see Bernews coverage.
Verdant Rock's entry into the market comes at a time when emerging market issuers face constrained access to credit enhancement tools, particularly for private sector debt. The BBB+ rating provides a credible alternative to monoline insurers and multilateral development banks, potentially unlocking new financing for infrastructure, energy, and other projects. The company's focus on private liabilities and its strict exclusion of sovereign risk align with regulatory trends favoring granular, non-correlated credit exposures. As the firm begins underwriting guarantees, market participants will watch its underwriting discipline and the impact on emerging market debt dynamics.
