A.M. Best Assigns Indicative Debt Ratings to Allstate's Shelf Registration.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 2, 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. indicative ratings of "a" senior debt, "a-" trust preferred, "a-" subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and "bbb+" preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to Allstate Corporation's (Northbrook, IL) $2 billion shelf registration, which was filed with the Securities and Exchange Commission on August 27, 2003. The $800 million that remains with Allstate's June 2000 shelf registration will be carried forward in connection with the new registration, resulting in a total registration of $2.8 billion. The rating outlook is positive. This filing does not impact Allstate's current leverage position with total debt (including trust preferreds) outstanding to adjusted 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. of approximately 22% as of June 30, 2003. Additionally, Allstate's ability to service its annual interest expense is strong at more than 10 times its earnings. The ratings also incorporate the $1.18 billion of non-regulated investments maintained outside of Allstate's insurance subsidiaries. Allstate's operating results for the first six months of 2003 improved over the same period in 2002, driven by increased revenue and improve personal lines claims frequency. Revenue increases were primarily attributable to rate adequacy initiatives in personal lines implemented in 2001 and 2002 and modest growth in homeowners and automobile policies. The results were favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. despite elevated catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). losses in the second quarter from severe spring weather activity. The following indicative ratings were assigned to the shelf registration: Allstate Corporation-- -- "a" senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. -- "a-" subordinated debt -- "bbb+" preferred stock Allstate Financing III, IV, V and VI-- -- "a-" trust preferred securities 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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