Moody's rates CNA Financial notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to $500 million of senior unsecured notes to be issued by CNA Financial Corp.

The 10-year notes rank pari passu with the issuer's other senior unsecured obligations.

The debt is being issued pursuant to the company's shelf registration, Moody's said.

The proceeds from the offering will be used primarily to redeem the $150 million outstanding of senior notes due January 2018 and to repurchase, redeem, repay or otherwise retire the $350 million outstanding aggregate principal balance of senior notes due November 2019, the agency said.

The outlook is stable.

The ratings reflect the group's consistently profitable franchise in specialty commercial insurance, solid asset quality and overall sound capital, liquidity and financial flexibility, the agency said.

These strengths remain tempered by stiff competition and still tepid, but steadily improved, profitability in the group's commercial lines segment, Moody's said.

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