Fitch gives Hanover positive outlook

Fitch Ratings said it changed Hanover Insurance Group Inc.’s outlook to positive from stable and affirmed its issuer default rating and senior notes at BBB-.

The agency said the revision in outlook reflects the sharp profitability expansion in the last two years due to improved exposures and mix in the United States as well as the consistently solid and growing contribution from Chaucer Holdings plc.

Hanover's ratings reflect adequate capitalization of U.S. operating subsidiaries and Fitch's belief that its internal capital formation is likely to continue to marginally improve, the agency said.

Fitch rates Liberty notes BBB

Fitch Ratings said it assigned a BBB rating to Liberty Property LP's $400 million 3.75% senior notes due 2025 and affirmed its issuer default rating, revolving credit facility and senior notes at BBB, its preferred operating units at BB+ and Liberty Property Trust’s issuer default rating at BBB. The outlook is stable.

Proceeds will be used for working capital and general corporate purposes, including repayment of borrowings under the $800 million credit facility.

The agency said the ratings for Liberty reflect its leverage, fixed-charge coverage and unencumbered asset coverage of unsecured debt, all of which are appropriate for a BBB rated REIT with the company's asset profile.

In Fitch’s view, moderate liquidity pressure, partly due to Liberty's growing but manageable development pipeline, and the persistent shortfall in the company's dividend coverage from adjusted funds from operations balance the ratings.

Moody's rates RenaissanceRe notes A3

Moody's Investors Service said it assigned an A3 rating with a negative outlook to $300 million of 10-year 3.7% senior notes issued by RenaissanceRe Finance Inc. and guaranteed by RenaissanceRe Holdings Ltd.

The note proceeds are being used to fund the acquisition of Platinum Underwriters Holdings Ltd., which closed on March 2.

The agency said the rating reflects the group's market leadership in property catastrophe reinsurance, good capital adequacy, profitable track record, superior customer service, strong risk management culture and a long history of using joint ventures and other forms of soft capital to meet client needs.

However, these strengths are tempered by the group's high business concentration in the very competitive property catastrophe reinsurance market (about half of total premiums, pro forma for Platinum acquisition) and its overweight exposures in the United States (over 60% of pro forma premiums) – notably Florida, Moody’s said.

The rationale for the negative outlook is that Moody’s remains circumspect about the benefits of the Platinum acquisition to creditors.

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