Moody's affirms Validus

Moody's Investors Service said it affirmed the ratings of Validus Holdings, Ltd. (Baa2 long-term issuer rating) and Validus Reinsurance, Ltd. (A3 insurance financial strength) upon the group's acquisition of IPC Holdings, Ltd. (unrated) and has changed the outlook to stable from negative.

As part of the acquisition, Validus paid $7.50 of cash per IPC common share and exchanged 0.9727 of a Validus voting common share per IPC common share. Total cash consideration was about $425 million.

"We affirmed the ratings and removed the negative outlook because we believe the acquisition offers slightly more positives than negatives from a credit perspective," said Kevin Lee, senior credit officer at Moody's, in a news release.

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