Moody’s rates Allied World notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to the 10-year 4.35% senior notes issued by Allied World Assurance Co. Holdings, Ltd. and guaranteed by ultimate parent Allied World Assurance Co. Holdings, AG.

The outlook is stable.

The debt issuance is a drawdown on an existing shelf registration.

Moody's said it views the debt offering as neutral to financial leverage because the company intends to use the net proceeds to repay $500 million of senior notes that come due in August of next year.

"Once the 7.5% notes mature next August, we expect the group's adjusted debt-to-capital ratio to revert back to the low 20's (20.7% as of YE14)," Kevin Lee, Moody’s analyst for Allied World, said in a news release.

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