OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned Long-Term Issue Credit Ratings of bbb+ to the forthcoming $300 million 3.350% senior unsecured notes due Sept. 17, 2029, and the $500 million 4.150% senior unsecured notes due Sept. 17, 2050, recently announced by Markel Corporation (Markel) (Glen Allen, VA) (NYSE:MKL). The outlook assigned to these Credit Ratings (ratings) is stable. All other existing ratings of Markel and its subsidiaries are unchanged.
The proceeds from the issuance will be used in the redemption of up to $600 million in senior unsecured notes of Markel and its Alterra Finance LLC subsidiary, for which Markel announced a tender offer on Sept. 12, 2019, and for general corporate purposes.
Following the completion of this debt offering and the redemption of the referenced securities, AM Best expects Markel’s debt-to-total capital ratio to be unchanged and to remain within the guidelines for the current ratings. Markel’s coverage metrics will be improved by the issuance of the lower-coupon securities and similarly, will remain within guidelines.
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