Fitch ups Alleghany debt to BBB+

Fitch Ratings said it affirmed the A- issuer default rating ratings of Alleghany Corp. and its holding company subsidiary Transatlantic Holdings, Inc.

In addition, the agency upgraded Alleghany's senior debt rating to BBB+ from BBB and affirmed Transatlantic's senior debt at BBB+.

Fitch also affirmed the A+ insurer financial strength rating of Transatlantic's property/casualty reinsurance subsidiaries and the A insurer financial strength rating of RSUI Group, Inc.'s property/casualty insurance subsidiaries.

The outlook is stable.

Fitch said the upgrade of Alleghany's senior debt rating reflects the expected continued reduction in Transatlantic's outstanding senior notes to about 26% of total company debt (down from 42% at June 30 and 59% at year-end 2013) at year-end 2015 as the company plans to utilize cash and investments at Transatlantic to fund the payment of Transatlantic's $367 million senior notes at maturity on Dec. 14, 2015.

Alleghany's senior debt remains subordinated to that of Transatlantic.

However, given the more limited remaining amount of Transatlantic debt and an expectation of any future company debt to be issued out of Alleghany, the agency said it aligned the senior note ratings of the two holding companies.

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