On May 12, 2008, Standard&Poor's Ratings Services assigned its 'A-' senior debt rating to ACE INA Holdings Inc.'s $450 million senior notes offering, which is fully and unconditionally guaranteed by ACE Ltd. (ACE; A-/Stable/A-2). ACE's financial flexibility is strong. Its debt to total capital was 17% as of first-quarter 2008. However, because ACE has a large amount of goodwill, tangible capital is a more appropriate denominator. The ratio of debt plus trust preferreds to tangible capital was 21% as of the first quarter of 2008, which is still consistent with the rating. These leverage figures will increase slightly (debt plus trust preferreds to tangible capital is now 23% on a pro forma basis) until ACE uses this $450
