A.M. Best Assigns Debt Rating to The Allstate Corporation's Newly Issued Subordinated Debentures
A.M. Best Assigns Debt Rating to The Allstate Corporation's Newly Issued Subordinated Debentures
OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a debt rating of "bbb+" to the 40-year $500 million 5.10% fixed-to-floating subordinated debentures recently issued by The Allstate Corporation (Allcorp) (Northbrook, IL) [NYSE: ALL]. The assigned outlook is stable. All existing ratings of Allcorp and its subsidiaries are unchanged.
The assigned rating recognizes Allstate Insurance Group's (Allstate) solid risk-adjusted capitalization, generally favorable operating performance and significant market presence. The rating also is indicative of A.M. Best's view of the group's near-term earnings prospects when considering its strong overall business profile as the second-largest personal lines writer in the United States. As of third quarter 2012, Allcorp's debt-to-capital and debt-to-tangible capital ratios were 25.4% and 26.7%, respectively, and the company continues to maintain a fixed interest coverage ratio that is supportive of its ratings.
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: "Understanding BCAR for Property/Casualty Insurers"; "Insurance Holding Company and Debt Ratings"; "Catastrophe Analysis in A.M. Best Ratings"; "Rating Members of Insurance Groups"; "Equity Credit for Hybrid Securities"; and "Risk Management and the Rating Process for Insurance Companies." 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.
Michael T. Venezia
Senior Financial Analyst
(908) 439-2200, ext. 5034
michael.venezia@ambest.com
or
Gary Davis
Assistant Vice President
(908) 439-2200, ext. 5665
gary.davis@ambest.com
or
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com
KEYWORDS: United States Europe North America New Jersey
INDUSTRY KEYWORDS:
The article A.M. Best Assigns Debt Rating to The Allstate Corporation's Newly Issued Subordinated Debentures 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.
