OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the recently announced $175 million 5.70% subordinated debentures due 2058 of W. R. Berkley Corporation (WRB) (Greenwich, CT) [NYSE:WRB]. The outlook assigned to the Credit Rating (rating) is stable. The existing ratings of WRB and its subsidiaries are unchanged.
Proceeds from the sale will be used for general corporate purposes. The addition of the debentures will modestly increase WRB’s financial leverage and interest obligations in the short term, but leverage and coverage are expected to decline in 2019 as two senior notes totaling approximately $450 million are expected by A.M. Best to be redeemed at maturity. WRB maintains financial leverage and coverage that are within A.M. Best’s guidelines for its rating.
Over the most recent five-year period, WRB has produced strong underwriting and operating results, and A.M. Best anticipates that the company will continue to produce favorable results over the long term while maintaining very strong risk-adjusted capitalization and moderate financial leverage.
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