AM Best Assigns Issue Credit Rating to W. R. Berkley Corporation’s Senior Unsecured Notes

Rhea-AI Summary

AM Best has rated W. R. Berkley Corporation (WRB) with a Long-Term Issue Credit Rating of “a-” for its $400 million, 3.55% senior unsecured notes due March 2052. The stable outlook indicates financial stability. Proceeds will repay the $76.5 million of existing 8.700% senior unsecured notes and part of the $350 million of 4.625% notes due 2022. Post-issuance, WRB's debt-to-total capital is projected at 26.9%, maintaining compliance with AM Best's guidelines.

Positive

• Assigned an 'a-' Long-Term Issue Credit Rating by AM Best for $400 million senior unsecured notes.
• Proceeds from the notes will improve financial stability by repaying existing higher-interest debt.

Negative

• None.

AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “a-” to the $400 million, 3.55% senior unsecured notes, due March 2052, 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 repay at maturity the $76.5 million aggregate principal amount of WRB’s 8.700% senior unsecured notes, due 2022 and toward the $350 million aggregate principal amount of the company’s 4.625% senior unsecured notes, due 2022. Following the issuance of the notes, WRB’s financial leverage is expected to remain within AM Best’s guidelines for the assigned rating. Debt-to-total capital will measure 26.9%, adjusted for equity credit for hybrid securities, and coverage metrics also will remain within AM Best’s guidelines.

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.

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FAQ

What is the Long-Term Issue Credit Rating assigned to W. R. Berkley Corporation (WRB)?

AM Best assigned a Long-Term Issue Credit Rating of 'a-' to W. R. Berkley Corporation (WRB).

How much is W. R. Berkley Corporation's new senior unsecured notes worth?

The new senior unsecured notes issued by W. R. Berkley Corporation are worth $400 million.

What will the proceeds from W. R. Berkley Corporation's new notes be used for?

The proceeds will be used to repay existing senior unsecured notes due in 2022.

What is W. R. Berkley Corporation's projected debt-to-total capital after the issuance?

W. R. Berkley Corporation's projected debt-to-total capital after the issuance is 26.9%.