A.m. best assigns debt rating to the progressive corporation’s senior debt offering

Oldwick, n.j.--(business wire)--a.m. best co. has assigned a debt rating of “a” to the $500 million aggregate principal amount of 3.75% senior unsecured notes, due 2021 recently issued by the progressive corporation (progressive) (mayfield village, oh) [nyse: pgr]. the assigned outlook is stable, and the notes were priced at 99.892% of par. all other existing ratings for progressive and its subsidiaries are unchanged. the proceeds will be used for general corporate purposes. based on the new debt offering, progressive’s debt-to-total capital ratio is approximately 28%. the company’s financial leverage and coverage ratios are within a.m. best’s guidelines for its current rating level, and are expected to remain so over the near to mid-term. the principal methodology used in determining these ratings is best’s credit rating methodology -- global life and non-life insurance edition, which provides a comprehensive explanation of a.m. best’s rating process and highlights the different rating criteria employed. additional key criteria utilized include: “risk management and the rating process for insurance companies”; “understanding bcar for property/casualty insurers”; “equity credit for hybrid securities”; and “a.m. best ratings & the treatment of debt.” methodologies can be found at www.ambest.com/ratings/methodology. founded in 1899, a.m. best company is the world's oldest and most authoritative insurance rating and information source. for more information, visit www.ambest.com. copyright © 2011 by a.m. best company, inc. all rights reserved.
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