Fitch downgrades Chubb to A+

Fitch Ratings said it affirmed all the ratings for ACE Ltd. and its subsidiaries and the insurer financial strength ratings for Chubb Corp. operating subsidiaries.

The agency also downgraded Chubb's issuer default rating to A+ from AA- and downgraded all other holding company obligations by one notch.

The outlook for all ratings is stable.

ACE's acquisition of Chubb for roughly $29.5 billion closed Jan. 14. The combined company is now known as Chubb Ltd. On July 1, 2015, ACE announced that it and Chubb entered into a definitive agreement whereby ACE would purchase all outstanding shares of Chubb with a combination of cash, debt, and equity, or approximately a 30% premium relative to the prior day closing stock price for Chubb.

Fitch said the downgrade of Chubb's holding company and debt ratings reflects technical consideration under the agency’s criteria as the former Chubb holding company received narrower notching due to larger committed holding company cash levels and higher operating interest coverage than the holding company of the newly combined companies.

The ratings now align with the new parent and reflect Chubb's core status.

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