AM Best Assigns Issue Credit Rating to American Financial Group, Inc.’s New Subordinated Debentures
OLDWICK, N.J.--(BUSINESS WIRE)--Nov 21, 2019--
AM Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the new $200 million 5.125% 40-year subordinated debentures, due 2059, of American Financial Group, Inc. (AFG) (Cincinnati, OH) (NYSE: AFG). The outlook assigned to this Credit Rating (rating) is stable. The existing ratings of AFG and its subsidiaries are unchanged.
AFG intends to use the net proceeds of the offering to redeem all of the $150 million aggregate outstanding principal amount of AFG’s 6.25% subordinated debentures due September 2054, and use the balance for general corporate purposes. Following the completion of the transactions discussed above, AFG’s adjusted financial leverage ratio will increase modestly, while its interest coverage ratio will remain largely unchanged. AFG’s adjusted and unadjusted financial leverage ratios and interest coverage measures all remain well within AM Best’s guidelines for AFG’s current ratings and are expected to remain so over the near term.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: AM Best
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PUB: 11/21/2019 05:43 PM/DISC: 11/21/2019 05:43 PM