The ratings of Bermuda-based Aspen Insurance Ltd. and UK-based Aspen Insurance UK Ltd. will be unaffected by Aspen's announced share sale, said Standard & Poor's Ratings Services (S&P).

The ratings agency said that Aspen Insurance UK Ltd. and Aspen Insurance's ratings both stayed at 'A' and stable, while Aspen Insurance Holdings Ltd. remained on 'BBB+' and stable following the company's decision to sell about 1.22 million of its ordinary shares in an underwritten public offering.

Meanwhile, AM Best Co. has removed from under review with developing implications and upgraded the financial strength rating (FSR) to A (excellent) from A- (excellent) and issuer credit rating (ICR) to 'a' from 'a-' of Aspen Specialty Insurance Company, a wholly-owned subsidiary of parent company, Aspen Insurance Holdings Ltd. The outlook assigned to both ratings is stable.

The proceeds of the share offering, which are based on yesterday's opening share price, were equivalent to approximately $27 million before transaction expenses. Aspen will use them mainly to finance part of the repurchase up to 2.7 million (or about $66.8 million at par) of its 7.401 percent perpetual non-cumulative preference shares.

S&P said that Aspen had extremely strong capital adequacy and held cash and cash equivalents of $809.1 million at year-end 2008 in addition to $365 million of available liquidity under its credit facilities, allowing it to finance the part repurchase of this $200 million hybrid, which is currently trading at 50 percent of its par value.