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Fitch Rates The Chubb Corporation's Senior Notes 'A+'; Affirms IDR at 'AA-'
CHICAGO-(Business Wire)-May 6, 2008 - Fitch Ratings assigns an 'A+' rating to the following senior note issuances of The Chubb Corporation's (NYSE: CB) (Chubb):
—$600 million issue of 5.75% senior notes due May 15, 2018;
—$600 million issue of 6.50% senior notes due May 15, 2038.
Proceeds of the offering will be used primarily to refinance the $460 million of debt that matures mid August this year. The balance of the net proceeds will be used for general corporate purposes and will replace the cash utilized earlier this year to repay $225 million of debt that matured on April 1, 2008.
In addition, Fitch affirms the ratings on Chubb, including the Issuer Default Rating (IDR) at 'AA-' and the ratings of all senior unsecured debt ratings at 'A+'. A full rating list is shown below. The Rating Outlook is Stable.
Chubb's pro forma financial leverage considering this new securities issuance and expected share repurchase continues to remain within expectations for the rating category.
Fitch has affirmed the following with a Stable Outlook:
The Chubb Corporation:
—IDR at 'AA-';
—Short term IDR at 'F1+';
—5.472% senior remarketed notes due August 2008 at 'A+';
—6.0% notes due November 2011 at 'A+';
—5.2% notes due April 2013 at 'A+';
—6.6% notes due August 2018 at 'A+';
—6.8% debentures due November 2031 at 'A+';
—6.0% senior notes due 2037 at 'A+';
—6.375% junior subordinated debentures due 2067 'A'.
—Commercial paper at 'F1+'.
Fitch has affirmed the following Issuer Financial Strength (IFS) ratings, with a Stable Rating Outlook:
Chubb's Property/Casualty Insurance subsidiaries:
—Federal Insurance Company at 'AA';
—Chubb Custom Insurance Co. at 'AA';
—Chubb Indemnity Insurance Co. at 'AA';
—Chubb National Insurance Co. at 'AA';
—Great Northern Insurance Co. at 'AA';
—Pacific Indemnity Co. at 'AA';
—Vigilant Insurance Co. at 'AA';
—Executive Risk Indemnity, Inc. at 'AA';
—Executive Risk Specialty Insurance Co. at 'AA';
—Chubb Insurance Company of Europe, S.A. at 'AA';
—Chubb Insurance Company of Canada at 'AA';
—Chubb Insurance Company of Australia Ltd. at 'AA';
—Chubb Atlantic Indemnity Ltd. at 'AA';
—Texas Pacific Indemnity Company at 'AA';
—Northwestern Pacific Indemnity Company at 'AA';
—Chubb Insurance Company of New Jersey at 'AA';
—Chubb Lloyds Insurance Company of Texas at 'AA'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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