OREANDA-NEWS. Fitch Ratings has assigned a 'BBB' rating to Intact Financial Corporation's (Toronto: IFC) (Intact) Series 4 non-cumulative preferred shares.

Fitch took no rating action on Intact's other ratings.

Intact's recently announced that 1.6 million of it 10 million non-cumulative Rate Reset Class A Share Series 3 (Series 3 Preferred Shares) were tendered for conversion on Sept. 30, 2016. At that time, each share will be converted on a one-for-one basis into non-cumulative floating rate Class A Shares Series 4 (Series 4 Preferred Shares) of IFC.

Subject to certain conditions described in IFC's prospectus supplement dated Aug. 11, 2011, IFC may redeem the Series 3 Preferred Shares, in whole or in part, on Sept. 30, 2021 and on Sept. 30 every five years thereafter and may redeem the Series 4 Preferred Shares, in whole or in part, after Sept. 30, 2016.

This transaction will not have any impact on financial leverage and a minimal impact on fixed charge coverage given the lower rate of the Series 3 Preferred Shares.

For further rationale on Intact's ratings see press release dated Aug. 31, 2016.