OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the $150 million 5.625% subordinated debentures due 2060 issued by American Financial Group, Inc. (AFG) (Cincinnati, OH). The outlook assigned to this Credit Rating (rating) is stable.
AFG intends to use the net proceeds of the offering for general corporate purposes, which may include the repurchase of common stock. Following the completion of the issuance, AFG’s adjusted financial leverage ratio will increase, while its interest coverage ratio will remain largely unchanged. AFG’s adjusted and unadjusted financial leverage ratios and interest coverage measures all remain within AM Best’s guidelines for AFG’s current ratings and are expected to remain so over the near term.
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