XL Capital Ltd. announced a proposed issue of $325 million senior notes today, and Standard & Poor's Ratings Services assigned them its "A-minus" senior debt rating.
The Bermuda-based insurer said proceeds from the notes' sale and available cash would be used to retire $825 million in 2.53 percent senior notes due in 2009 that form part of the 6.5 percent equity security units that settle on May 15, 2007.
The new issue would be due May 15, 2027.
"The ratings on XL are based on its very strong global market presence, very strong interest and fixed-charge coverage, and diversified earnings stream," said Standard & Poor's credit analyst Steven Ader.
Somewhat offsetting these strengths are a track record of inconsistent earnings performance and an exposure to large catastrophic losses, he noted.
The stable outlook, he said, reflects XL's continued integration of its very strongly positioned global insurance, reinsurance, and life and annuity operations.
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