AM Best Co. has assigned a debt rating of "bbb+" to the recently issued $500 million 5.875 percent senior unsecured notes due 2020 of Axis Specialty Finance LLC.

The senior notes are unconditionally and irrevocably guaranteed by Axis Capital Holdings Ltd. The assigned outlook is stable.

The proceeds from the debt offering will be used for general corporate purposes, which may include the repurchase of common shares. The debt-to-adjusted capital ratio and fixed charge coverage remain comfortably within the range that is commensurate with the assigned rating for Axis.

Axis is a diversified specialty insurance and reinsurance company with operating subsidiaries in Bermuda, Europe and the US. As of December 31, 2009, reported GAAP shareholders' equity was just over $5.5 billion.