A.M. Best Assigns Debt Rating to The Navigators Group, Inc.'s Newly Issued Senior Notes

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

A.M. Best Assigns Debt Rating to The Navigators Group, Inc.'s Newly Issued Senior Notes

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a debt rating of "bbb+" to the newly issued $265 million 5.75% senior unsecured notes due 2023 of The Navigators Group, Inc.(Navigators) (New York, NY) [NASDAQ: NAVG].The outlook assigned is stable. Navigators' existing financial strength, issuer credit and debt ratings are unchanged.

Navigators intends to use a portion of the proceeds to immediately retire its $115 million par value 7.0% senior unsecured notes, which are due on May 1, 2016. The balance of the proceeds will be used for general corporate purposes.


While Navigators' financial leverage ratio will be temporarily increased from its historical norms upon issuance, the impact on financial leverage is expected to improve in the short term given Navigators' plans to retire the 2016 debt immediately. Navigators' financial leverage and interest coverage ratios remain well within A.M. Best guidelines for its current rating even during the brief period when both debt issues are outstanding.

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.

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.
Adrienne Tortoriello
Senior Financial Analyst
(908) 439-2200, ext. 5088
adrienne.tortoriello@ambest.com
or
Jennifer Marshall
Assistant Vice President
(908) 439-2200, ext. 5327
jennifer.marshall@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  North America  New Jersey

INDUSTRY KEYWORDS:

The article A.M. Best Assigns Debt Rating to The Navigators Group, Inc.'s Newly Issued 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

Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside
Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts
If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic