Moody's rates Aspen Insurance shares Ba1

Moody's Investors Service said it assigned a Ba1 rating to the proposed $200 million perpetual non-cumulative preference shares to be issued by Aspen Insurance Holdings Ltd., the existing perpetual Preferred Income Equity Replacement Securities (Piers) of which are rated Ba1.

Proceeds will be used for general corporate purposes, including the repurchase of the company's outstanding ordinary shares.

The agency said the rating, which has a stable outlook in line with other Aspen Group ratings, reflects the instrument's preferred claim in liquidation.

The instrument will qualify for Basket D classification by Moody's, and will be treated as 75% equity and 25% debt in the adjusted financial leverage calculation. Basket D treatment reflects the perpetual maturity and the fact that the ability to redeem the preference shares will be limited by the terms of a replacement capital covenant, optional non-cumulative interest deferral and deep subordination of the instrument, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.