A.M. Best Assigns Debt Ratings to Markel Corporation's Senior Notes

Before you go, we thought you'd like these...
Before you go close icon

A.M. Best Assigns Debt Ratings to Markel Corporation's Senior Notes

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned debt ratings of "bbb+" to the $250 million 3.625% senior unsecured notes due 2023 and the $250 million 5.0% senior unsecured notes due 2043, issued under the existing shelf registration of Markel Corporation (Markel) (Richmond, VA) [NYSE: MKL]. The outlook assigned to both ratings is stable.

Markel will use the net proceeds from the sale of the notes for general corporate, including acquisitions.


After the close of the Alterra Capital Holdings Limited [NASDAQ: ALTE] transaction, which is expected in second quarter 2013, Markel's total debt-to-capital ratio is projected to be at a manageable 27%, increasing to 34% when debt is measured to tangible equity. At December 31, 2012, Markel's stand-alone debt leverage was 28%. Markel's financial leverage and coverage ratios remain within A.M. Best's guidelines for its debt ratings.

At the holding company level, Markel will have pro-forma cash and investments in excess of $1.0 billion, affording it a significant level of liquidity.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology 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, visitwww.ambest.com.

Copyright © 2013 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.



A.M. Best Co.
Rick Barracato, 908-439-2200, ext. 5787
Senior Financial Analyst
richard.barracato@ambest.com
or
Joseph Roethel, 908-439-2200, ext. 5630
Assistant Vice President
joseph.roethel@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

KEYWORDS:   United States  Europe  North America  New Jersey  Virginia

INDUSTRY KEYWORDS:

The article A.M. Best Assigns Debt Ratings to Markel Corporation's Senior Notes originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners