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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 20, 2020 03:54 PM (EDT)
AM Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the new $300 million 2.5% 10-year senior unsecured notes offering, to be issued by The Hanover Insurance Group, Inc. (THG) (headquartered in Worcester, MA) [NYSE: THG]. The outlook assigned to this Credit Rating (rating) is stable.
Proceeds from the sale of the senior unsecured notes will be used to repurchase, redeem, repay or otherwise retire the $175 million outstanding aggregate principal balance of THG’s 6.35% subordinated deferrable debentures due March 30, 2053. Any remaining net proceeds will be used for general corporate purposes. THG maintains financial leverage and coverage measures that are well within AM Best’s guidelines for this rating and are expected to remain so following the new debt issuance. The existing ratings of THG and its subsidiaries are unchanged.
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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.