Fitch affirms ACE Ltd. ratings

Fitch Ratings said it affirmed the A-/F2 ratings of ACE Ltd. following Tuesday's announcement that ACE plans to spin off its financial guaranty insurance subsidiaries via an initial public offering.

Ratings affirmed include ACE Ltd.'s senior debt at A- and preferred stock at BBB+, as well as ACE INA Holdings Inc.'s senior debt at A-, ACE Capital Trust I's trust preferred securities at BBB+, and ACE Capital Trust II's capital securities at BBB+.

Fitch said it generally views the transaction as positive for ACE's debt ratings and the ratings of its U.S. property/casualty insurance subsidiaries, depending on the amount of proceeds from the IPO and the manner in which they are deployed.

Fitch expects the transaction to increase ACE's tangible equity and generate cash, which may be used to support the company's insurance operations or reduce its financial leverage.

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