| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for ACE Ltd. > News item |
Moody's changes ACE outlooks to developing
Moody's Investors Service said it changed its rating outlooks on members of the ACE Guaranty and ACE Capital Re group of companies to developing, from stable.
The outlook change reflects the announcement by these companies' parent, ACE Ltd., of its intent to pursue an initial public offering of its financial guaranty business. The rating outlook for ACE Ltd. and its other subsidiaries remains stable.
Moody's currently maintains an insurance financial strength rating of Aa2 on ACE Guaranty Corp. and Aa3 on ACE Capital Re International Ltd., ACE Capital Re Overseas Ltd., ACE Capital Mortgage Reinsurance Co. and ACE Capital Title Reinsurance Co. Moody's also rates the parent of these entities, ACE Ltd. at A3 (senior unsecured).
Moody's noted that a spinoff of ACE's financial guaranty business could affect the credit profile of a number of ACE subsidiaries, including both ACE Guaranty Corp. and ACE Capital Re International Ltd., the two rated entities whose business would appear to comprise the core operations of the new company.
Moody's also changed to developing the rating outlooks for other subsidiaries that could be affected, namely ACE Capital Re Overseas Ltd., ACE Capital Mortgage Reinsurance Co. and ACE Capital Title Reinsurance Co.
The rating agency added that, while the contemplated changes are significant, it is too early to conclude on the rating consequences for those ACE subsidiaries whose business would be contributed to the new company. Moody's further commented that the proposed IPO of its financial guaranty business should not significantly alter the credit profile of ACE Ltd. and its other subsidiaries.
© 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.