XL to Offer $650 Million in Senior Notes; Rating Agencies Assign ‘A’ to Issue

November 9, 2004

Bermuda’s XL Capital Ltd. announced plans to sell up to $300 million of senior notes due 2014 and up to $350 million of senior notes due 2024, pursuant to the company’s currently effective shelf registration statement.

Standard & Poor’s Rating Services announced that it has assigned its “A” senior debt rating to the notes. It noted: “These issues are a draw-down from the company’s existing $1.93 billion shelf registration.” S&P also affirmed its “A” counterparty credit ratings on XL and its related holding company XL America.

Fitch Ratings announced that it has assigned an “A” rating to XL’s proposed offering. “The rating corresponds to XL’s existing long-term issuer and senior debt rating of “A,” said Fitch. “Proceeds of the offering will be used to repay XL’s outstanding issue of zero coupon convertible debentures (CARZ). XL’s debt-to-total capital ratio was approximately 21 percent at Sept. 30, 2004, adjusting for equity credit on preferred and mandatory convertible securities,” Fitch’s announcement continued. “This ratio will not change materially following the offering. Fixed-charge coverage was approximately 5.4 times (x) for the nine months ending Sept. 30, 2004. XL’s annual interest expense will increase moderately following this issuance.

“The ratings continue to reflect XL’s position within the global insurance and reinsurance markets, historical underwriting and earnings performance, strong operating cash flow, and adequate capital position at the parent and subsidiary level.”

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