Fitch rates CNA notes BBB

Fitch Ratings said it assigned a BBB rating to $500 million of senior notes issued by CNA Financial Corp.

The company’s existing ratings are unaffected.

The proceeds from the notes will be used to repurchase, redeem, repay or otherwise retire the $500 million outstanding principal balance of 5.875% senior notes due Aug. 15, 2020.

“The ultimate net impact on the financial leverage ratio (FLR) is zero, and the impact on interest coverage will be a slight positive as the new issuance carries a rate of 3.9%, approximately 200 basis points lower than the rate on the retired debt,” the agency said in a news release.

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