S&P rates HCC notes A

Standard & Poor's said it assigned an A senior debt rating to HCC Insurance Holdings Inc.'s $300 million senior unsecured note issue.

Proceeds will be used to repay about $210 million of existing debt and for general corporate purposes.

According to S&P, the rating is based on the company's competitive position, operating performance, financial leverage, coverage ratios, capitalization and financial flexibility.

Partly offsetting these positive factors is the increased balance-sheet risk as the group expands its business into longer tail lines and increases its retentions, the agency said, along with relatively high reinsurance recoverable risk and the integration risk associated with frequent smaller acquisitions.

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