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, Moody's said.

The senior debt is being issued pursuant to the company's shelf registration.

The proceeds from the offering will be used primarily to repurchase, redeem, repay or otherwise retire the $500 million outstanding aggregate principal balance of senior notes due August 2020.

The outlook is stable.

The ratings reflect the group's major presence in U.S. commercial and specialty insurance, its profitable specialty insurance operations and improving core commercial business, good risk-adjusted capitalization, sound liquidity and dividend capacity and the historically supportive parentage of Loews Corp., Moody's said.

These strengths are tempered by the intrinsic reserve volatility associated with long-term casualty business, the agency said, and by risks inherent in CNA's runoff businesses, especially long-term care, the agency said.

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