S&P’s assigned its “BBB-” preferred stock rating to Ace Ltd.’s $500 million, 7.80 percent cumulative redeemable preferred shares, Series C offering. Ace may redeem these shares any time after May 30, 2008. S&P’s also affirmed its “BBB+” counterparty credit and senior debt ratings on Ace. In addition, S&P’s affirmed its “A+” counterparty credit and financial strength ratings on the insurance operations that make up the Ace Group.
The outlook on all these companies is negative, reflecting S&P’s belief that Ace’s financial leverage will remain at about 20 percent and its capital adequacy ratio will remain at least 145 percent. Conversely, Ace’s near-term earnings potential and financial strength will continue to be burdened by capital-management pressures, sizeable goodwill, and material exposure to credit risk.
Topics Trends
Was this article valuable?
Here are more articles you may enjoy.
Marsh McLennan Agency to Acquire The Horton Group 
Hacker Says AT&T Paid About $400,000 to Erase Sensitive Data 
AT&T Says Data From Around 109M Customer Accounts Illegally Downloaded 
Allstate Seeking 34% Rate Hike on California Homeowners Insurance From This Issue
