OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating of “a+” to the $700 million 4.00% senior unsecured notes, due May 30, 2047, recently issued by The Travelers Companies, Inc. (Travelers) (headquartered in New York, NY)(NYSE:TRV). The outlook assigned to the Credit Rating (rating) is stable.
The proceeds from the sale of the notes will be used to retire Travelers’ existing $450 million of 5.75% senior unsecured notes, due Dec. 15, 2017, as well as to help fund a portion of the previously announced acquisition of Simply Business, a digital provider of insurance policies to small businesses in the United Kingdom. While Travelers’ financial leverage will modestly increase in the near term, it will remain well within A.M. Best’s guidelines to support this rating. A.M. Best anticipates Travelers’ coverage ratios to remain strong and well supportive of the current rating.
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