AM Best Assigns Issue Credit Rating to The Travelers Companies, Inc.’s New Senior Unsecured Notes

Rhea-AI Summary

AM Best has assigned a Long-Term Issue Credit Rating of 'a+' (Excellent) to Travelers' newly issued $750 million, 3.05% 30-year senior unsecured notes, maturing June 8, 2051. The rating outlook is stable, and all other ratings for Travelers remain unchanged. The funds will support general corporate purposes. Although Travelers' financial leverage will see a modest increase, it remains compliant with AM Best's rating guidelines. AM Best positively assesses Travelers' debt-servicing capabilities, highlighting its liquidity, structured debt maturity, and solid interest coverage.

Positive

• Assigned a Long-Term Issue Credit Rating of 'a+' to new $750 million notes.
• Outlook assigned is stable, indicating confidence in financial stability.
• Sufficient liquidity to service debt and favorable debt-servicing capabilities.

Negative

• Financial leverage will increase modestly, though it remains within acceptable limits.

AM Best has assigned a Long-Term Issue Credit Rating of “a+” (Excellent) to the new $750 million, 3.05% 30-year senior unsecured notes due June 8, 2051, recently issued by The Travelers Companies, Inc. (Travelers) (headquartered in New York, NY) [NYSE: TRV]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Travelers and its subsidiaries are unchanged.

The proceeds from the sale of the notes will be used for general corporate purposes. While Travelers’ financial leverage will increase modestly, it will remain within AM Best’s guidelines to support its current ratings. AM Best views Travelers’ debt-servicing capabilities favorably, with sufficient liquidity to service its debt, a well-laddered debt maturity structure and strong interest coverage.

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 Guide to 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 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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210604005504/en/

FAQ

What is the new debt rating assigned to Travelers (TRV) by AM Best?

AM Best has assigned a Long-Term Issue Credit Rating of 'a+' (Excellent) to Travelers' new $750 million notes.

What will the proceeds from Travelers' new notes be used for?

The proceeds will be utilized for general corporate purposes.

What is the maturity date of the new senior unsecured notes issued by Travelers (TRV)?

The senior unsecured notes are due on June 8, 2051.

How does AM Best view Travelers' debt-servicing capabilities?

AM Best positively views Travelers' debt-servicing capabilities, noting sufficient liquidity and strong interest coverage.

Is Travelers' financial leverage increasing?

Yes, Travelers' financial leverage will increase modestly but remains within AM Best's guidelines.