A.M. Best Comments on the Ratings of The Allstate Corporation and Its Subsidiaries
May 30, 2013 by Best's News Service
OLDWICK, N.J. – A.M. Best Co. has commented that the financial strength, issuer credit and debt ratings of The Allstate Corporation (Allcorp) (Northbrook, IL) [NYSE: ALL] and its subsidiaries are unchanged following Allcorp’s recently announced capital restructuring plan. The outlook for all ratings is stable.
Allcorp’s restructuring plan includes cash tenders and proposed new issuances of preferred stock, subordinated “hybrid” securities and senior debt, which is intended to enhance its capital adequacy and leverage while reducing its cost of capital. Allcorp’s intentions are to retire outstanding debt, repay or pre-fund some of its debt maturing in 2013 and 2014 and repurchase through tender offers portions of its outstanding debt obligations at a premium.
A.M. Best has analyzed this pertinent information and decided that presently there is no impact on the ratings from this restructuring plan.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at http://www.ambest.com/ratings/methodology. BN-NJ-05-29-2013 1625 ET #
