OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “a-” to the recently announced CAD 425 million 2.85% senior unsecured notes, due 2027, and has assigned a Long-Term IR of “bbb” to the recently announced CAD 150 million Preferred Stock of Intact Financial Corporation (Intact) (Toronto ON) (TSX:IFC). The outlook assigned to the Credit Ratings (ratings) is stable. Intact’s Long-Term Issuer Credit Rating of “a-”, its existing Long-Term IRs and the ratings of its operating insurance subsidiaries are unchanged.
The proceeds from these issuances are intended to be utilized to help fund the pending acquisition by Intact of OneBeacon Insurance Group Ltd., slated to close in the fourth quarter 2017. While Intact’s financial leverage will increase modestly in the near term, it will remain within A.M. Best’s guidelines to support its current ratings.
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