Fitch rates Hiscox notes BBB+

Fitch Ratings said it assigned an expected BBB+ rating to Hiscox Ltd.'s proposed senior unsecured notes issue.

The notes are rated one notch below Hiscox's issuer default rating of A-, Fitch said.

The outlook is stable.

The ratings reflect a baseline assumption of below average recovery prospects for the debt issued out of the group's holding companies.

The notes will rank pari passu without any preference among themselves with all other outstanding unsecured and unsubordinated obligations of Hiscox, Fitch noted.

The proceeds will be used for general corporate purposes and to provide additional financial flexibility as Hiscox invests in a number of projects that will support future growth, the agency said.

The issue will lead to an increase in Hiscox's financial leverage ratio, Fitch added, and a reduction in fixed-charge coverage.

But, the agency said it expects both of those credit metrics to remain commensurate with the current rating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.