Business & Finance
Business and Finance
Business and Finance
Thu, October 28, 2010 A.M. Best Assigns Ratings to The Travelers Companies, Inc.a?s Senior Notes
OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has assigned debt ratings of aaa to the $500 million 3.9% 10-year senior unsecured notes and $750 million 5.35% 30-year senior unsecured notes of The Travelers Companies, Inc. (Travelers) (St. Paul, MN) (NYSE:TRV). The assigned outlook is stable.
"A.M. Besta™s Ratings & the Treatment of Debt."
The net proceeds from the offerings are expected to be used to fund the consummation of a tender offer for any or all of Travelersa™ $1.0 billion subordinated debentures, due 2067. Proceeds from the offerings also may be used to pay a portion of outstanding debt as it matures over the next few years.
At September 30, 2010, Travelersa™ debt-to-total capital was 18.6%, down slightly from 19.2% at year-end 2009. A.M. Best expects Travelersa™ debt-to-total capital to be approximately 22% following the close of the transactions, which is well within A.M. Besta™s guidelines for the assigned rating level. In addition, Travelersa™ holding company liquidity is significant with $2.82 billion of liquid funds at September 30, 2010.
The principal methodology used in determining these ratings is [ Besta™s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Besta™s rating process and highlights the different rating criteria employed. Additional key criteria utilized include a[ A.M. Besta™s Ratings & the Treatment of Debt ].a Methodologies can be found at [ www.ambest.com/ratings/methodology ].
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit [ www.ambest.com ].
