AM Best has assigned a Long-Term Issue Credit Rating of "bbb+" to the recently announced $300 million 5.10% subordinated debentures due 2059 of W. R. Berkley Corporation (WRB) (Greenwich, CT) [NYSE:WRB]. The outlook assigned to this Credit Rating (rating) is stable. The existing ratings of WRB and its subsidiaries are unchanged.
Proceeds from the sale will be used for general corporate purposes. The addition of the debentures will increase WRB’s financial leverage and interest obligations modestly in the short term, but leverage and coverage had a modest decrease in 2019 upon the retirement of $441 million in senior unsecured notes. WRB maintains financial leverage and coverage that are within AM Best’s guidelines for this rating.
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Jennifer Marshall, CPCU, ARM
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Michael Lagomarsino, CFA, FRM
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