Moody's rates PCI Capital notes Baa3

Moody's Investors Service said it assigned a provisional rating of (P)Baa3 to the proposed issue of $100 million senior notes by PCI Capital Ltd., a wholly owned subsidiary of Pacific Century Insurance Co. Ltd. The outlook is stable.

Moody's said the rating reflects the effective subordination of the guarantee to PCI's liabilities relating to its long-term business and its liabilities to its long-term policyholders.

At the same time, PCI's rating is offset by its relatively small size and market share, intensifying competition in Hong Kong's evolving life insurance market and potential increase in debt leverage from financing its China strategy, according to Moody's.

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