Moody's: ACE units on review, ACE outlook cut to negative

Moody's Investors Service said it affirmed the long-term debt ratings of ACE Ltd. (senior unsecured debt at A3) and its indirect wholly owned subsidiary ACE INA Holdings Inc. (guaranteed senior unsecured debt at A3).

Moody's said the outlook on the debt ratings was changed to negative from stable following the company's announcement that it would record a $298 million after-tax charge associated with the completion of its asbestos and environmental review.

At the same time, Moody's placed the A2 insurance financial strength ratings of the ACE American pool companies and the Ba3 IFSR ratings of Century Indemnity Co. and Century Reinsurance Co. under review for possible downgrade.

The Ba3 IFSR for ACE American Reinsurance Co. has been placed on review with direction uncertain due to the announcement by ACE of the planned sale of the company along with two other runoff reinsurance companies to Randall & Quilter Investment Holdings Ltd.

According to Moody's, the review of the U.S. insurance companies will focus on the prospective regulatory capital adequacy of both the ongoing and run-off operations, the earnings capacity of the ongoing entities and the continued uncertainties about the adequacy of the A&E reserves.

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