On May 9, 2006, Standard&Poor's Ratings Services assigned its 'BBB+' senior debt rating to ACE INA Holdings Inc.'s $300 million senior debt issuance, which is due 2036 and is fully and unconditionally guaranteed by ACE Ltd. (NYSE:ACE). ACE's financial flexibility is strong. Its debt to total capital was 15% at year-end 2005 and 14% as of first-quarter 2006. However, because ACE has a large amount of goodwill, tangible equity is a more appropriate denominator. The ratio of debt plus trust preferreds to tangible equity was 25% as of the first quarter of 2006. These leverage figures will increase slightly until this $300 million issuance is used to pay-down existing debt due August 2006. Interest coverage was 8x in
