A.M. Best has assigned an issue rating of "a-" to the recently announced $300 million 3.5% 10-year senior unsecured notes of American Financial Group, Inc. (AFG) (Cincinnati, OH) AFG. The assigned outlook is stable. AFG's issuer credit rating of "a-", its existing issue ratings and the ratings of its operating insurance subsidiaries are unchanged.
The proceeds from this issuance will be used to fund a portion of the purchase price to acquire all of the common shares of National Interstate Corporation (NATL) NATL, not currently owned by AFG's subsidiary, Great American Insurance Company. The merger is expected to close in the fourth quarter of 2016. Should the deal not consummate, the funds will be utilized for general corporate purposes, which may include stock repurchases. While AFG's financial leverage will modestly increase in the near term, it will remain within A.M. Best's guidelines to support its current ratings.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page.
A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160817006152/en/
A.M. Best
Michael Russo, +1-908-439-2200, ext. 5372
Senior
Financial Analyst
michael.russo@ambest.com
or
Jennifer
Marshall, +1-908-439-2200, ext. 5327
Assistant Vice President
jennifer.marshall@ambest.com
or
Christopher
Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim
Peavy, +1-908-439-2200, ext. 5644
Assistant Vice President,
Public Relations
james.peavy@ambest.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.