A.M. Best Assigns Debt Rating to Infinity Property & Casualty Corporation's Senior Notes
OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a debt rating of "bbb" to the $275 million 5.0% 10-year senior unsecured notes of Infinity Property & Casualty Corporation (Infinity) (headquartered in Birmingham, AL) (NAS: IPCC) that were issued on September 19, 2012. The assigned outlook is stable. Infinity's existing financial strength, issuer credit and debt ratings are unchanged.
A.M. Best anticipates the proceeds from this issuance will be used to redeem the $195 million 5.5% 10-year senior unsecured notes due February 18, 2014. Any remaining proceeds will be used for general corporate purposes.
While Infinity maintains financial leverage and interest coverage that are in line with its current ratings, its debt-to-total capital ratio has increased in the short term due to this additional debt issuance. However, it is projected to decrease to approximately 30.0% at year-end 2012. This is due to the planned redemption of the $195 million 5.5% 10-year senior unsecured notes, which is scheduled to take place on October 17, 2012.
On March 21, 2012, A.M. Best affirmed Infinity's ICR of "bbb" with a stable outlook.
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. Key criteria utilized include: "Catastrophe Analysis in A.M. Best Ratings"; "Insurance Holding Company and Debt Ratings"; "Risk Management and the Rating Process for Insurance Companies"; and "Understanding BCAR for Property/Casualty Insurers." 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 © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
A.M. Best Co.
Kenneth Tappen, 908-439-2200, ext. 5248
Senior Financial Analyst
Joseph Burtone, 908-439-2200, ext. 5125
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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