S&P assigns Crum & Forster notes BB

Standard & Poor's said it assigned its BB senior unsecured debt rating to Crum & Forster Holdings Corp.'s $300 million senior notes issuance due 2017.

The agency added that the new debt issuance is expected to pay down the existing senior notes outstanding of $300 million due 2013 and therefore leverage figures are not expected to change materially.

According to S&P, the rating reflects Crum & Forster's historical utilization of finite reinsurance and past reserve charges, a significant portion of which were related to latent asbestos reserves.

The company is also retaining more property risk, which could increase earnings and capital volatility, the agency said, noting that offsetting these negative factors are good capitalization, a good competitive position and improving earnings.

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