Moody's & S&P React To ACE IPO
By Mark E. Ruquet
NU Online News Service, Dec. 3, 11:37 a.m. EST?The decision by ACE, Ltd., to pursue an initial public offering of its financial guaranty business drew a mixed reaction from two rating services.
New York City-based Standard & Poor's said the Hamilton, Bermuda-based ACE plan would not "have an immediate effect on the ratings of ACE member companies or financial guaranty subsidiaries.[@@]
S&P rates ACE, Ltd., at "triple-B-plus/negative/A-two."
Moody's, also based in New York, changed its rating on ACE Guaranty and Capital Re Group of companies from stable to developing.
Ratings were also changed for ACE Capital Re Overseas, Ltd., ACE Capital Re Overseas, Ltd., ACE Capital Mortgage Reinsurance Company and ACE Capital Title Reinsurance Company, to developing. The Moody's analysis added that the rating outlook for ACE, Ltd., and its other subsidiaries remains stable.
The rating agency said that it was too soon to tell how the IPO would affect the involved entities.
Moody's places the carrier's Insurance Financial Strength Rating for ACE, Ltd., at "A-three (senior unsecured)."
As reported yesterday, Fitch Ratings gave a favorable outlook to the IPO.
ACE said it plans to complete the IPO in the first half of 2004.
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