Fitch gives BBB+ to Allied World debt

Fitch Ratings said it assigned a BBB+ debt rating to Allied World Assurance Co. Holdings, Ltd.'s new $500 million issuance of 4.35% senior debt due 2025.

The company expects to use the net proceeds for the repayment, upon maturity, of its outstanding $500 million 7.5% senior notes due Aug. 1, 2016.

Allied World's reported financial leverage as of Sept. 30 was 18.8%. Pro forma financial leverage as of Sept. 30 including the additional debt is 27.1%, which exceeds Fitch's rating trigger for the current rating level. Once the notes that mature in 2016 are repaid, leverage is expected to return below 25%.

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