A.M. Best Co. has assigned a debt rating of “bbb” to the USD 600 million senior unsecured fixed rate notes issued by XLIT Ltd. (Cayman Islands) and guaranteed by XL Group plc (XL) (Ireland) [NYSE:XL]. The outlook assigned is positive. All other ratings of XL entities and related debt issues remain unchanged.
A.M. Best expects the net proceeds from the offering to be used to redeem the USD 600 million 5.25% senior unsecured notes, which are due to mature in September 2014, with any remaining net proceeds to support other general corporate purposes. The new senior unsecured notes mature in November 2018 and November 2043. The issuance of the new notes will cause a temporary increase in XL’s leverage ratios; however, these ratios will still remain within A.M. Best’s guidelines for XL’s current ratings.
A factor that may lead to positive or negative ratings actions is a change in the ratings of XL Group.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.