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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 09, 2020 04:50 PM (EDT)
AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” to the new $200 million 4.5% 40-year subordinated debentures, due 2060, of American Financial Group, Inc. (AFG) (Cincinnati, OH). The outlook assigned to this Credit Rating (rating) is stable. The existing ratings of AFG and its subsidiaries are unchanged.
The proceeds of the sale are expected to be used for general corporate purposes, which may include the redemption of callable subordinated debt and stock repurchases. Unless all proceeds are used to redeem debt, AFG’s adjusted and unadjusted financial leverage ratios will increase, and coverage will decline modestly but remain within AM Best’s expectations for AFG’s current Long-Term IR.
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AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.