Moody's rates Validus notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to the 30-year senior unsecured debt issuance of Validus Holdings, Ltd., which is expected to be between $250 million and $350 million.

The outlook is stable.

Proceeds are expected to be used for general corporate purposes, which may include dividends to shareholders or the repurchase of common stock under a $400 million share repurchase authorization.

"This new debt issuance will tap into the additional borrowing capacity that Validus gained through its recent acquisition of IPC Holdings Ltd.," Kevin Lee, a senior credit officer at Moody's, said in a statement.

According to Moody's, the Baa2 senior debt rating is based on the credit support provided by the holding company's insurance operating subsidiaries and sufficient financial flexibility due to moderate debt leverage.

These credit strengths are tempered by the company's limited operating history relative to some peers, competitive nature of the reinsurance business and substantial exposure to catastrophic losses, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.