Fitch rates ACE notes A

Fitch Ratings said it expects to assign an A rating to the $450 million senior note issuance planned by ACE INA Holdings Inc., a subsidiary of ACE Ltd. The notes are guaranteed by ACE and therefore are based on ACE's A+ issuer default rating. Proceeds will help redeem the company's existing $575 million of perpetual preferred shares in June 2008, the agency said.

ACE's issuer default rating is A+ and its $575 million preferred stock is A-. ACE INA Holdings' issuer default rating is A+, $100 million senior debentures due 2029 at A, $500 million senior notes due 2014 at A, $500 million senior notes due 2017 at A, $300 million senior notes due 2036 at A and $300 million senior notes due 2018 at A.

The outlook is stable.

Fitch said it believes that following completion of the financing plans, ACE's pro forma debt-to-capital ratio of about 19% is still well within an acceptable level for ACE's current rating category.

Fitch also noted that ACE, unlike many of its peers, has not repurchased shares during the current soft market.

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