Moody's rates CNA notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to the senior notes due 2021 issued by CNA Financial Corp.

The outlook is stable.

Proceeds from the offering will be used to redeem $400 million of senior notes due August 2011.

The ratings on CNA Financial and its subsidiaries reflect the group's leadership position in many major commercial and specialty property/casualty insurance lines in the United States, good risk-adjusted capitalization, improved financial flexibility and operational controls, profitable specialty lines segment and historically supportive parentage of Loews Corp., Fitch said.

The ratings also consider earnings volatility over time and high combined ratios in the commercial lines segment, potential claim reserve volatility and general industry risks arising from the group's exposures to natural and man-made catastrophes, the agency said.

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