AM Best Assigns Fidelis Notes A Stable Outlook
AM Best assigned a “bbb-” [Good] Long-Term Issue Credit Rating with a stable outlook to Fidelis Insurance Holdings Limited’s $400 million fixed-rate subordinated notes, due 2055.
The ratings agency said, “AM Best has assigned an indicative Long-Term Issue Credit Rating [Long-Term IR] of “bbb-” [Good] to fixed rate subordinated notes to be issued by Fidelis Insurance Holdings Limited [Fidelis] [Bermuda]. The outlook assigned to this Credit Rating [rating] is stable.
“The assigned rating for securities that may be issued under the shelf registration statement is consistent with the ranking of the notes, which mature in 2055. Fidelis is targeting an issuance size of up to $400 million. Fidelis’ adjusted financial leverage might temporarily increase following the issuance but it is expected to return to its long-term guidance. Interest coverage ratio is within AM Best’s guidelines. Some of the proceeds of the offering will be used to repay outstanding preference shares, while the remainder will be used for general corporate use.”
