AM Best Assigns Issue Credit Rating to Intact Financial Corporation’s Senior Unsecured Medium Term Notes

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the recently issued $500 million, 5.459%, 10 year senior unsecured medium term notes (MTN) issued by Intact Financial Corporation (IFC) (Toronto, Ontario, Canada). The outlook assigned to this Credit Rating (rating) is stable. The Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of IFC’s operating subsidiaries and all other ratings of outstanding issuances remain unchanged.

IFC intends to use the net proceeds from this issuance to repay at maturity the entire outstanding aggregate principal amount of Intact U.S. Holdings Inc.'s 4.6% senior unsecured notes due November 2022. Any remaining net proceeds may be used for debt repayment and general corporate purposes.

IFC chose to issue this MTN in the United States mainly because U.S. funds were required to redeem the opening balance MTN outstanding, and to fund the U.S. acquisition of Highland Insurance Solutions. Highland is a managing general agent specializing in the builders risk segment of the construction market, and will expand Intact's portfolio of owned distribution assets.

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