OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb” to the $500 million 3.450% senior unsecured notes, due Aug. 15, 2027, recently announced by CNA Financial Corporation (CNAF) (headquartered in Chicago, IL) [NYSE: CNA]. The outlook assigned to the Credit Rating (rating) is stable.
The proceeds from the sale of the notes will be used to repay at maturity the $150 million outstanding aggregate principal balance of CNAF’s 6.950% senior notes due Jan. 15, 2018, and to repurchase, redeem, repay or otherwise retire the $350 million outstanding aggregate principal balance of CNAF’s 7.350% senior notes due Nov. 15, 2019. While CNAF’s financial leverage will modestly and temporarily increase immediately following the issuance, it will remain well within A.M. Best’s guidelines to support CNAF’s current ratings. A.M. Best anticipates that CNAF’s adjusted and unadjusted debt-to-total capital ratios will return to levels that approximate current levels once the refinancing transactions are complete. A.M. Best anticipates CNAF’s coverage ratios to modestly improve due to the lower coupon on the new debt and to remain supportive of the current rating.
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