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TEXT-S&P rates OneBeacon U.S. Holdings notes 'BBB-'
November 7, 2012 / 3:20 PM / 5 years ago

TEXT-S&P rates OneBeacon U.S. Holdings notes 'BBB-'

Nov 7 - Standard & Poor's Ratings Services said today it assigned its 'BBB-'
rating to OneBeacon U.S. Holdings, Inc. (OBH; BBB-/Stable/--) offering of $275
million of 4.6% senior unsecured notes due 2022. The senior notes will be
guaranteed by OneBeacon Insurance Group Ltd. (NYSE:OB; BBB-/Stable/--),
indirect parent of OBH. The existing ratings on OB and OBH remain unchanged. 

We understand the company will use the proceeds to redeem all of OBH's 
outstanding 5.875% $270 million senior unsecured notes due May 2013. On a pro 
forma adjusted basis, based on the financials as of third-quarter 2012 (ended 
Sept. 30), OB's consolidated debt leverage is expected to be in line with the 
current leverage. The debt leverage as of Sept. 30, 2012 was about 21%. 
Furthermore, the company's interest coverage ratio is likely to improve due to 
the lower expected coupon on the new debt. We expect the pro forma debt 
leverage and coverage ratios to remain supportive of the current ratings. 

RELATED CRITERIA AND RESEARCH
Holding Company Analysis, June 11, 2009


RATINGS LIST
OneBeacon U.S. Holdings Inc.
Counterparty credit rating                 BBB-/Stable/--

Ratings Assigned
Senior unsecured                           BBB-


Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.

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