Fitch: PRE Ireland notes BBB+

Fitch Ratings said it assigned a BBB+ rating to the €750 million 1.25% notes due Sept. 15, 2026 issued by PartnerRe Ireland Finance DAC (PRE Ireland).

The agency also said it also affirmed PartnerRe Ltd.'s ratings, including its A- issuer default rating and the A+ insurer financial strength rating of Partner Reinsurance Co. Ltd.

The outlook is stable.

PartnerRe has unconditionally and irrevocably guaranteed the notes issued by PRE Ireland, its wholly owned subsidiary, Fitch said.

PRE Ireland's issuance ranks pari passu with the company’s currently outstanding senior unsecured notes, the agency said.

The proceeds will be used from the offering to refinance its $250 million of senior notes due June 1, 2018 and redeem all $150 million outstanding 6.5% series D cumulative redeemable preferred shares and 7.25% series E cumulative redeemable preferred shares, as well as for general corporate purposes, Fitch said.

Pro forma for the debt issuance, refinancing and redemption, financial leverage increases to about 19.7% from 14.3% as of June 30, the agency said.

The ratings reflect the company's large reinsurance market position, very strong capitalization with moderate operating leverage, reasonable financial leverage and favorable reserve adequacy, Fitch said.

These favorable factors are partially offset by the company’s limited diversity outside of reinsurance and negative sector outlook on global reinsurance with industry earnings pressured, the agency said.

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