Allstate gets rating agency outlook ahead of acquisition
In advance of the insurer’s upcoming acquisition deal, AM Best has given Allstate Corporation a “stable” outlook for its senior unsecured notes.
The credit rating agency has assigned Long-Term Issue Credit Ratings of “a” to the issued $600 million 0.750% senior unsecured notes due 2025 and the $600 million 1.450% senior unsecured notes due 2030 of Allstate.
A release said that the outlook assigned to these ratings is “stable.” AM Best also said that Allstate’s existing ratings and its insurance subsidiaries remain unchanged.
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After the debt issuance, AM Best anticipates that Allstate’s financial leverage and interest coverage metrics will “remain within the guidelines for its current ratings.” The insurer will use the proceeds from the issuance for the partial funding of its announced acquisition of National General Holdings – which is expected to close sometime in the first quarter of 2021, subject to regulatory approvals.