Fitch to rate ACE debt A

Fitch Ratings said it expects to assign an A rating to the $500 million senior unsecured note issuance planned by ACE INA Holdings Inc., a subsidiary of ACE Ltd. The notes will be guaranteed by ACE and are based on its A+ issuer default rating.

The outlook is stable.

Proceeds are expected to be used to refinance roughly $466 million of existing debt maturing in 2009.

The rating action reflects ACE's continued favorable operating performance, solid balance sheet and financial flexibility, and diverse sources of revenues and earnings, the agency said.

Partially offsetting these positives is expectation of continued pressure on investment performance related to the current economic instability, potential earnings volatility from catastrophe losses and variable annuity reinsurance, and the effect of significant competition in the company's chosen markets, Fitch said.

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