Moody's rates Chubb notes A2

Moody's Investors Service said it assigned an A2 rating to Chubb Corp.'s $600 million senior notes due 2018 and $600 million senior notes due 2038, issued under the company's shelf registration.

The outlook is stable.

Proceeds are expected to be used to pre-fund $460 million of corporate debt that will mature before the year-end, to replace cash used earlier this year to repay $225 million of debt and for general corporate purposes.

Moody's said the A2 rating is based on the senior unsecured ranking, as well as the company's fundamental credit profile.

Ratings reflect Chubb's leadership in high-end personal lines and executive protection insurance, its commitment to underwriting discipline, strong customer service capabilities and favorable outlook for internal capital generation, the agency said.

These strengths are tempered somewhat by the insurer's exposure to catastrophe-related claim losses in its property lines of business, by exposure to volatile claim and litigation trends in its professional liability segment, and by concerns about the industry's exposure to asbestos liabilities, Moody's said.

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