AM Best Assigns Issue Credit Rating to American Financial Group, Inc.'s New Subordinated Debentures
AM Best has assigned a Long-Term Issue Credit Rating of "bbb+" to the new $200 million 5.125% 40-year subordinated debentures, due 2059, of American Financial Group, Inc. (AFG) (Cincinnati, OH) (NYSE:AFG). The outlook assigned to this Credit Rating (rating) is stable. The existing ratings of AFG and its subsidiaries are unchanged.
AFG intends to use the net proceeds of the offering to redeem all of the $150 million aggregate outstanding principal amount of AFG's 6.25% subordinated debentures due September 2054, and use the balance for general corporate purposes. Following the completion of the transactions discussed above, AFG's adjusted financial leverage ratio will increase modestly, while its interest coverage ratio will remain largely unchanged. AFG's adjusted and unadjusted financial leverage ratios and interest coverage measures all remain well within AM Best's guidelines for AFG's current ratings and are expected to remain so over the near term.
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SOURCE: AM Best
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