S&P gives RenaissanceRe notes A

Standard & Poor's said that it assigned its A senior debt rating to RenaissanceRe Holdings Ltd.'s $300 million of 3.7% senior unsecured notes due 2025.

The agency said it expects RenaissanceRe to use the proceeds of this issue to finance its previously announced acquisition of Platinum Underwriters Holdings Ltd. for $1.9 billion in cash and stock, which was completed on March 2.

The notes will be issued by RenaissanceRe Finance Inc. (not rated) and guaranteed by RenaissanceRe Holdings.

The agency noted that it believes RenaissanceRe's financial flexibility is strong and it expects its financial leverage to remain less than 20% and fixed-charge coverage of the combined entity to be around 7x-8x during the next two years.

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