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TMCNet:  A.M. Best Assigns Issue Credit Rating to CNA Financial Corporation's Senior Unsecured Notes

[August 09, 2017]

A.M. Best Assigns Issue Credit Rating to CNA Financial Corporation's Senior Unsecured Notes

A.M. Best has assigned a Long-Term Issue Credit Rating of "bbb" to the $500 million 3.450% senior unsecured notes, due Aug. 15, 2027, recently announced by CNA Financial Corporation (CNAF) (headquartered in Chicago, IL) [NYSE: CNA]. The outlook assigned to the Credit Rating (rating) is stable.

The proceeds from the sale of the notes will be used to repay at maturity the $150 million outstanding aggregate principal balance of CNAF's 6.950% senior notes due Jan. 15, 2018, and to repurchase, redeem, repay or otherwise retire the $350 million outstanding aggregate principal balance of CNAF's 7.350% senior notes due Nov. 15, 2019. While CNAF's financial leverage will modestly and temporarily increase immediately following the issuance, it will remain well within A.M. Best's guidelines to support CNAF's current ratings. A.M. Best anticipates that CNAF's adjusted and unadjusted debt-to-total capital ratios will return to levels that approximate current levels once the refinancing transactions are complete. A.M. Best anticipates CNAF's coverage ratios to modestly improve due to the lower coupon on the new debt and to remain supportive of the current rating.

This press release relates to Credit Ratings that have been published on A.M. Best's websie. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.


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