A.M. Best Assigns Debt Rating to Liberty Mutual Group Inc.'s Senior Note Offerings.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb" to Liberty Mutual Group Inc.'s (LMGI) (Boston, MA) issuances of $250 6.7% 144a senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. notes, due 2016, and $500 million 7.5% 144a senior unsecured notes, due 2036. This rating action is in line with LMGI's existing senior debt ratings, which remain unchanged. LMGI's ultimate parent company is Liberty Mutual Holding Company Inc. (LMHC LMHC Licensed Mental Health Counselor LMHC Lockheed Martin Hanford Corporation LMHC Lakeview Manor Healthcare Center (Tawas City, Michigan) LMHC Low Mass High Cost ) (Boston, MA). The outlook for this rating is stable. Proceeds from the offering will be utilized for general corporate purposes, as well as to strengthen the overall level of capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. . After this transaction, LMHC's total debt-to-total capitalization is expected to be approximately 28%. Management anticipates long-term financial leverage will decrease gradually to approximately 25%. LMHC's GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). interest coverage ratio is approximately eight times. For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit www.ambest.com/pc. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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