Fitch: Beazley Re notes BBB+

Fitch Ratings said it assigned an expected rating of BBB+ to Beazley Re Designated Activity Co.'s proposed issue of subordinated debt securities due in 2026.

The notes are rated two notches below Beazley Re's issuer default rating of A to reflect their subordination and moderate risk of non-performance, Fitch explained.

The proceeds will be used to support the future growth plans of the Beazley Group Ltd., the agency said.

The subordinated bond is classified as 100% capital due to regulatory override within the agency's risk-based capital calculation and is classified as 100% debt in Fitch’s financial leverage calculations, the agency said.

Fitch said it expects the group’s financial leverage to remain commensurate with the currency ratings.

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