AM Best Assigns Issue Credit Rating to CNA Financial Corporation’s Senior Unsecured Notes
OLDWICK, N.J.--(BUSINESS WIRE)--May 1, 2019--AM Best has assigned a Long-Term Issue Credit Rating of “bbb” to the $500 million of 3.90% senior unsecured notes, due May 2029, recently announced by CNA Financial Corporation (CNAF) (headquartered in Chicago, IL) [NYSE:CNA]. The outlook assigned to the Credit Rating (rating) is positive.
The proceeds from the sale of the notes will be used to repurchase, redeem, repay or otherwise retire the $500 million outstanding aggregate principal balance of CNAF’s 5.875% senior unsecured notes due Aug. 15, 2020. While CNAF’s financial leverage will increase modestly and temporarily immediately following the issuance, it will remain well within AM Best’s guidelines to support CNAF’s current ratings. Once the refinancing transactions are complete, AM Best anticipates that CNAF’s adjusted and unadjusted debt-to-total capital ratios will return to levels that approximate current levels and that coverage ratios will improve modestly due to the lower coupon on the new debt.
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 the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 05/01/2019 04:35 PM/DISC: 05/01/2019 04:35 PM