A.M. Best Assigns Rating to W.R. Berkley's Senior Notes.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 10, 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. a "bbb" senior debt rating to W.R. Berkley Berkley (bûr`klē), city (1990 pop. 16,960), Oakland co., SE Mich., a suburb of Detroit; inc. 1932. It is chiefly residential. Corporation's (Greenwich, CT) (NYSE NYSE See: New York Stock Exchange : BER (1) (Basic Encoding Rules) A set of encoding rules for ASN.1 notation, which is a method for defining data structures. See ASN.1. (2) (Bit Error Rate) The average number of bits transmitted in error. See BERT. 1. ) $150 million 5.125% senior notes maturing in 2010. The notes are being issued under the company's existing $700 million shelf registration statement, of which $174 million of capacity will remain subsequent to this offering. Proceeds will be used to increase the surplus of the company's operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. to support 2003 growth and for general corporate purposes. The company's debt and financial strength ratings incorporate A.M. Best's expectations that management will ensure all of the operating subsidiaries maintain capital levels supportive of their respective ratings. The $150 million senior note issue partially supports A.M. Best's expectations. The ratings also reflect the company's significant earnings momentum produced over the past several quarters, fairly conservative operating and investment platform, and limited exposure to asbestos asbestos, mineral asbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. liabilities. The company's financial leverage--debt plus trust preferred securities--is expected to increase to 35.3% subsequent to the note issue, but decline thereafter as capital builds with quality earnings and capital market initiatives. It should be noted that despite the increase, leverage is being maintained at lower than historical levels and capital has been well structured, particularly with a lack of reliance on short term debt. Holding company cash has been, and is expected to continue to be, variable. Partial proceeds from capital market issues have, over past few years, been maintained at the holding company to fund fixed expenses and shareholder dividends thereby allowing the operating subsidiaries to accumulate Accumulate Broker/analyst recommendation that could mean slightly different things depending on the broker/analyst. In general, it means to increase the number of shares of a particular security over the near term, but not to liquidate other parts of the portfolio to buy a security capital and support organic growth. A.M. Best expects cash to be sufficient to cover expenses for the remainder of 2003 and through 2004. 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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