Moody's rates RenaissanceRe notes A3

Moody's Investors Service said it assigned an A3 rating and stable outlook to the proposed $250 million 10-year senior notes issuance of RenRe North America Holdings Inc., a U.S. downstream holding company of Bermuda-based RenaissanceRe Holdings Ltd.

"It is our expectation that the proceeds will be used as standby credit to replace a portion of RenRe's expiring credit facility, and therefore the debt will not be treated as financial leverage for analytic purposes," Kevin Lee, a senior credit officer at Moody's, said in a statement.

"It is our expectation that the proceeds will be segregated and invested in assets with durations similar to that of the senior notes, and that the proceeds will be tapped only in rare occasions, consistent with when a revolving credit facility would be drawn."

The A3 rating on the senior notes is based on the parental guarantee provided by RenRe and the credit support provided by RenRe's insurance and reinsurance operations, according to the agency.

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