Best’s News & Research Service - September 17, 2020 10:23 AM (EDT)
AM Best Assigns Issue Credit Rating to W. R. Berkley Corporation’s Subordinated Debenture
- September 17, 2020 10:23 AM (EDT)
Oldwick //BestWire// - AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” to the $250 million, 4.25% subordinated debentures, due September 2060, recently announced by W. R. Berkley Corporation (WRB) (Greenwich, CT) [NYSE:WRB]. The outlook assigned to the Credit Rating (rating) is stable.
Proceeds will be used to complete the redemption of WRB’s 5.625% subordinated notes, due April 2053 and general corporate purposes. Following the issuance of the 2060 debentures and completion of the redemption of the 2053 notes, WRB’s financial leverage will increase slightly, but remain within AM Best’s guidelines for the assigned rating. Debt to total capital will measure 23.6%, adjusted for equity credit for hybrid securities. Unadjusted debt to total capital will measure 30.7%. Coverage metrics will also remain within guidelines.
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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.