A.M. Best Assigns Debt Ratings to SAFECO's New Senior Notes.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 29, 2003 A.M. Best Co. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. "bbb+" senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. ratings to the $200 million 4.200% five-year notes and $300 million 4.875% seven-year notes issued by SAFECO Safeco Corporation (NYSE: SAF) is a major American national insurance company. It has naming rights to the Seattle Mariners' baseball stadium, Safeco Field. Safeco was founded in Seattle, Washington in 1923 by Hawthorne K. Corporation (Nasdaq:SAFC SAFC South Australian Film Corporation SAFC Sunderland Association Football Club SAFC Securities America Financial Corporation SAFC South Australia Film Corporation SAFC Stirling Albion Football Club (UK) ) (Seattle). These securities were issued under SAFECO's $775 million shelf registration previously filed with the Securities and Exchange Commission. Also, SAFECO's existing debt ratings have been affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. while the financial strength ratings on the group's property/casualty and life/health companies are unaffected. The proceeds from the senior debt will be used to repay SAFECO's $300 million 7.875% notes maturing on March 15, 2003, and to call at par on April 1, 2003, up to $200 million of the principal amount of 7.875% notes due April 2005. This offering has no impact on the total amount of SAFECO's debt. Its total debt to capital ratio (including capital securities) is approximately 30%. A.M. Best anticipates that SAFECO's fixed charge coverage will continue to improve toward the upper end of the four-six times range, reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the recent earnings improvement and lower interest expense. The strategies and action plans recently implemented by management have strengthened SAFECO's balance sheet, fostered the introduction of new products and related technology and enabled the company to significantly improve its operating performance. Its property/casualty operations have benefited considerably from operational changes and milder weather in 2002, while the strong, steady performance of SAFECO Life & Investments continues to generate significant earnings and provide much-needed diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. to the organization. The following debt ratings have been assigned: SAFECO Corporation-- -- "bbb+" rating on $200 million 4.200% senior unsecured notes, due February 1, 2008 -- "bbb+" rating on $300 million 4.875% senior unsecured notes, due February 1, 2010 For a list of A.M. Best's current debt ratings, please visit www.ambest.com/ratings/debtrating/companies.html. 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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