INTACT FINANCIAL CORPORATION Fitch Ratings has assigned an 'A-' rating to Intact Financial Corporations' (Intact) new senior unsecured medium term notes due 2034.
The existing ratings assigned to Intact and its insurance subsidiaries are unaffected by today's rating action.
Key Rating Drivers
The notes have been assigned a rating one notch below Intact's Long-Term Issuer Default Rating (IDR) of 'A', which reflects standard notching based on Fitch's insurance rating criteria. The rating assigned to the new notes is equivalent to Fitch's ratings on Intact's outstanding senior notes.
Fitch does not expect the issuance to cause Intact to breach any of its established rating sensitivities. The company plans to use the proceeds to repay the outstanding aggregate principal amount of its
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
A sustained combined ratio in the low 90s;
A change to the capital navigator factor of 'aa' or better.
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A sustained increase in financial leverage of 28% or higher;
A sustained reduction in fixed-charge coverage below 5.0;
A sustained underwriting loss.
Date of Relevant Committee
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
RATING ACTIONS
Entity / Debt
Rating
senior unsecured
LT
A-
New Rating
Page
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Additional information is available on www.fitchratings.com
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