Moody’s lowers Chubb debt after merger closes

Moody’s Investors Service said it took multiple rating actions on debts, debt programs and insurance financial strength ratings of members of the combined ACE and Chubb organizations following the closing of a transaction by Chubb Ltd., formerly named ACE Ltd.

The Chubb Corp. was merged into ACE INA Holdings, Inc., both of them being the primary debt-issuing entities of their respective groups, with ACE INA Holdings remaining as the surviving entity, Moody’s said.

ACE INA Holdings’ backed senior unsecured debt was affirmed at A3, along with its backed senior unsecured shelf rating at provisional A3 and subordinated shelf rating at provisional Baa1.

ACE Capital Trust II’s backed preferred securities were affirmed at Baa1(hyb) and ACE Capital Trust III and IV’s backed preferred securities shelf rating was affirmed at provisional Baa1.

Moody’s also said it downgraded debts issued by, and programs previously pertaining to, Chubb Corp., including its senior unsecured to A3 from A2, junior subordinated debt rating to Baa1(hyb) from A3(hyb) and commercial-paper rating to prime-2 from prime-1.

All of the post-closing combined debt obligations and debt programs of ACE INA Holdings are unconditionally and irrevocably guaranteed by Chubb Ltd., Moody’s said.

The ratings reflect the group’s consolidated franchise strength and global leadership in property- and casualty-insurance with a diversified international spread of risk and strong profitability, the agency said.

Chubb’s robust U.S.-based franchise positions the combined group with a market-leading platform across commercial, specialty and high-end personal lines operations, Moody’s said, with exceptional product depth and breadth.

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