for its recent spate of acquisitions.

Fitch affirmed the `F1' commercial paper ratings of ACE Ltd. and ACE INA Holdings Inc.

Fitch said its rating action reflects ACE's success in integrating their 1999 acquisitions of ACE INA and ACE Financial Services (formerly Capital Re Corporation).

The ratings consider the underwriting profits reported by ACE INA and AC Financial Services since their acquisition by ACE, tempered by the recognition that ACE has only reported five quarters ownership of ACE INA and three quarters ownership of ACE Financial Services.

The agency said the ratings also reflect the significant reduction in financial leverage since the ACE INA acquisition, which was financed with funds on hand and commercial paper.

ACE subsequently arranged permanent financing through a combination of senior and subordinated debt, hybrid debt /equity securities and common stock.

It added that as a result, ACE's debt to total capital ratio fell from nearly 40 percent at year-end 1999, to its current level of below 30 percent (when adjusted to give partial equity credit to hybrid securities).