Fitch Rates up to $550MM of New CNA Senior Notes.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Today, Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has assigned a 'BBB-' rating to CNA Financial CNA Financial Corporation (NYSE: CNA) is a financial corporation based in Chicago, Illinois, United States, and noted for its 600 foot tall red headquarters building there. Its principal subsidiary, Continental Casualty Company (CCC) was founded in 1897. Corporation's (CNAF CNAF Caisse Nationale des Allocations Familiales (French: national family allowances fund) CNAF Commander, Naval Air Forces CNAF Canadian Native Arts Foundation CNAF Combined Name and Address File ) proposed 10-year senior notes due 2014 of up to $550 million. In addition, CNAF's long-term issuer rating has been affirmed, as well as the ratings on its outstanding debt and the insurer financial strength ratings of its primary insurance subsidiaries. A full rating list is shown below. The Rating Outlook is Negative. Proceeds for the new issue are expected to be used to pay down debt, including senior notes that mature in April 2005 and surplus notes owned by the company's majority owner, Loews Corporation. Thus, the long-term impact of this new issue will not change CNAF's financial leverage profile. Additionally, the company's financial leverage has been modest in the recent period, as financial leverage at Sept. 30, 2004 was 17% after adjusting for FAS 115. Following this new senior note issue, financial leverage will temporarily spike to approximately 22%, which remains a conservative level. The fixed income and property/casualty insurer financial strength ratings have a Negative Outlook due to concerns related to the company's ability to generate stable, improving operating results. While operating performance during 2004 has been solid, the company has a history of poor underwriting performance and multiple, large reserve increases. Fitch's rating rationale continues to recognize the Loews ownership of CNAF but also acknowledges that Loews' long-term support of CNAF has lessened on a go-forward basis and that the ratings place less emphasis on Loews than in the past. CNA Financial Corp. The following actions have a Negative Outlook: --Long-term issuer affirmed at 'BBB-'; --Proposed up to $550 million due December 2014 assigned 'BBB-'; --US$493 million 6.5% due April 15, 2005 affirmed at 'BBB-'; --US$250 million 6.75% due Nov.15, 2006 affirmed at 'BBB-'; --US$150 million 6.45% due Jan. 15, 2008 affirmed at 'BBB-'; --US$200 million 6.6% due Dec. 15, 2008 affirmed at 'BBB-'; --US$150 million 6.95% due Jan. 15, 2018 affirmed at 'BBB-'; --US$243 million 7.25% due Nov. 15, 2023 affirmed at 'BBB-'. The Continental Corporation --US$70 million 8.375% due Aug. 15, 2012 affirmed at 'BBB-'. Continental Casualty Company Pool --Insurer financial strength affirmed at 'A-' with a Negative Outlook. Members include: Continental Casualty Company American Casualty Company of Reading, Pennsylvania Reading (IPA:/ˈrɛdɪŋ/) is the county seat of Berks County, Pennsylvania and the center of the Greater Reading Area. Boston Old Colony Insurance Company CNA (Certified NetWare Administrator) See Novell certification. Casualty of California CNA Lloyd's of Texas Columbia Casualty Company Commercial Insurance Company of Newark, New Jersey Continental Insurance Company of New Jersey Continental Insurance Company of Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. Continental Lloyd's Insurance Company Continental Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Corporation Encompass Home and Auto Insurance Company Encompass Independent Insurance Company Encompass Insurance Company of America Encompass Property and Casualty Company Firemen's Insurance Company of Newark, New Jersey Galway Insurance Company Glens Falls Glens Falls, city (1990 pop. 15,023), Warren co., E central N.Y., in the foothills of the Adirondack Mts. and on the Hudson River; settled 1762, inc. as a city 1908. Major industries include lumber, paper, and electronics. A navy training center is there. Insurance Company Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). Fire & Marine Insurance Company Mayflower Mayflower, ship Mayflower, ship that in 1620 brought the Pilgrims from England to New England. She set out from Southampton in company with the Speedwell, Insurance Company, Ltd. National Fire Insurance Company of Hartford National-Ben Franklin Insurance Company of Illinois Niagara Fire Insurance Company Pacific Insurance Company The Buckeye Union Insurance Company The Continental Insurance Company The Fidelity and Casualty Company of New York Transcontinental Insurance Company Transportation Insurance Company Valley Forge Insurance Company Continental Assurance Company --Insurer financial strength affirmed at 'A-' with a Negative Outlook. |
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