Press release from Business Wire
A.M. Best Assigns Debt Rating to The Allstate Corporation's Newly Issued Subordinated Debentures
Wednesday, August 07, 2013
A.M. Best Assigns Debt Rating to The Allstate Corporation's Newly Issued Subordinated Debentures10:00 EDT Wednesday, August 07, 2013
OLDWICK, N.J. (Business Wire) -- A.M. Best Co. has assigned a debt rating of “bbb+” to the 40-year $800 million 5.75% fixed-to-floating subordinated debentures recently issued by The Allstate Corporation (Allcorp) (Northbrook, IL) [NYSE: ALL]. The assigned outlook is stable.
The proceeds from the offering are expected to be used to partially fund “retirement” of approximately $3.0 billion of outstanding debt in connection with Allcorp's recently announced capital restructuring plans, repurchasing common stock and for general corporate purposes. The $3.0 billion “retirement” includes the $1.8 billion principal amount of bonds tendered, the 2013 debt maturity of $250 million repaid in June and the $950 million pre-funded 2014 debt maturities.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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A.M. Best Co.
Michael T. Venezia, 908-439-2200, ext. 5034
Senior Financial Analyst
Gary Davis, 908-439-2200, ext. 5665
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations