OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has assigned a Long-Term Issue Credit Rating of “bbb” to
the $500 million of 3.90% senior unsecured notes, due May 2029, recently
announced by CNA Financial Corporation (CNAF) (headquartered
in Chicago, IL) [NYSE:CNA]. The outlook assigned to the Credit Rating
(rating) is positive.
The proceeds from the sale of the notes will be used to repurchase,
redeem, repay or otherwise retire the $500 million outstanding aggregate
principal balance of CNAF’s 5.875% senior unsecured notes due Aug. 15,
2020. While CNAF’s financial leverage will increase modestly and
temporarily immediately following the issuance, it will remain well
within AM Best’s guidelines to support CNAF’s current ratings. Once the
refinancing transactions are complete, AM Best anticipates that CNAF’s
adjusted and unadjusted debt-to-total capital ratios will return to
levels that approximate current levels and that coverage ratios will
improve modestly due to the lower coupon on the new debt.
This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is the world’s oldest and most authoritative insurance rating
and information source. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
subsidiaries. ALL RIGHTS RESERVED.
Contacts
Greg Dickerson
Senior Financial Analyst
+1
908 439 2200, ext. 5161
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Michael Lagomarsino, CFA, FRM
Senior Director
+1
908 439 2200, ext. 5810
[email protected]
Jim Peavy
Director, Public Relations
[email protected]
+1
908 439 2200, ext. 5644
