Fitch Expects to Rate Wilton Re’s New Sr. Unsecured Notes ‘BBB’ [Manufacturing Close – Up]

Fitch Ratings expects to assign a 'BBB' rating to Wilton Re Finance LLC$300 million planned issuance of 5.875 percent senior notes due 2033.

The notes are unconditionally guaranteed by Wilton Re Holdings Limited and Wilton Re U.S. Holdings, Inc. The transaction is expected to close on April 2.

KEY RATING DRIVERS

The net proceeds of this offering will be used for general corporate purposes, including the funding of various new business transactions or the repayment of borrowings under the company's revolving credit facility. Pro forma financial leverage is expected to remain under 25 percent.

On Feb. 20, Fitch assigned initial 'A' Insurer Financial Strength (IFS) ratings to Wilton Reassurance Company, Wilton Reinsurance Bermuda Limited, Wilton Reassurance Life Company of New York and Texas Life Insurance Company. At the same time, Fitch assigned a long-term Issuer Default Rating (IDR) of 'BBB+' to Wilton Re Holdings Limited. The Rating Outlook is Stable.

RATING SENSITIVITIES

The key rating triggers that could result in a downgrade include:

--Financial leverage increases above 25 percent;

--Large transactions outside the company's historical risk preference or expertise or any other material changes in risk appetite for the company;

--Sustained drop in the company's risk-adjusted capital position with no plans or ability to rectify;

--Decline in ROE below 10 percent;

--A change in regulation that would materially increase or change the company's current reserving, capitalization or redundant statutory reserve collateral requirements.

While Fitch does not anticipate an upgrade in the near term, factors that could trigger a positive rating action in the longer term include:

--Continued growth in profitability and successful execution of management plans and additional seasoning of the company's in-force book of business;

--Maintenance of capital levels at or above current levels on a risk-adjusted basis.

Fitch expects to assign:

Wilton Re Finance LLC

--5.875 percent Senior Notes due Mar. 30, 2033 at 'BBB'.

Fitch currently rates the Wilton Re entities as follows:

Wilton Reassurance Company

Wilton Reinsurance Bermuda Limited

Wilton Reassurance Life Company of New York

Texas Life Insurance Company

--IFS 'A'; Outlook Stable.

Wilton Re Holdings Limited

--Long-term IDR 'BBB+'; Outlook Stable.

Additional information is available at 'fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Related Research:

--'Insurance Rating Methodology' (Jan. 11,).

Applicable Criteria and Related Research

Insurance Rating Methodology - Amended

http://fitchratings.com/creditdesk/reports/ report_frame.cfm?rpt_id=698731

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