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A.M. Best Assigns Debt Rating to The Hanover Insurance Group, Inca?s New Senior Note

^{Published on 2011-06-17 09:06:00 - Market Wire}
 

OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has assigned a debt rating of abbba to the $300 million, 6.375% unsecured senior notes due June 15, 2021 of The Hanover Insurance Group, Inc. (THG) (Worcester, MA) (NYSE: THG). As announced by the group, the proceeds from the note will be used to partially fund its proposed acquisition of Chaucer Holdings PLC., (United Kingdom) [LSE: CHU], a leading specialist insurance group and the parent of Lloyda™s Syndicates 1084 and1176. The transaction, which is subject to the approval of regulatory bodies in the United States and United Kingdom, is expected to close during the third quarter of 2011.

"A.M. Besta™s Ratings & the Treatment of Debt."

The new debt issuance will increase the companya™s debt-to-capital ratio to approximately 26%. THGa™s debt-to-capital ratio was approximately 20% as of December 31, 2010. The companya™s financial leverage and coverage ratios are within A.M. Besta™s guidelines for the current ratings and are expected to remain so over the near term.

On June 13, 2011, A.M. Best affirmed the ratings of THG, its member companies and all existing debt ratings. (Please see A.M. Besta™s press release of the same date for further details).

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 aA.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 the world's oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.