A.M. Best Co. has assigned a debt rating of "bbb” to the $400
million 5.75% senior notes, due 2021 issued by XL Group Ltd.
(Cayman Islands) and guaranteed by XL Group plc (Ireland) [NYSE:
XL]. The assigned outlook is stable.
The proceeds from the issuance will be used to partially repay existing
senior notes issued by XL Capital Finance (Europe) plc (United
Kingdom), maturing in January, 2012. XL Group Ltd.’s debt-to-adjusted
capital ratio and rolling three-year fixed charge coverage remains
comfortably within the range that is commensurate with the assigned
rating.
The principal methodology used in determining these ratings is Best’s
Credit Rating Methodology -- Global Life and Non-Life Insurance Edition,
which provides a comprehensive explanation of A.M. Best’s rating process
and highlights the different rating criteria employed. Additional key
criteria utilized include: "A.M. Best’s Ratings & the Treatment of
Debt.” Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
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