AM Best has assigned a Long-Term Issue Credit Rating of a- to the new $300 million 5.25% 10-year senior unsecured notes due April 2030 recently issued by American Financial Group, Inc. (AFG) (Cincinnati, OH) [NYSE: AFG]. The outlook assigned to this Credit Rating (rating) is stable. The existing ratings of AFG and its subsidiaries are unchanged.
AFG intends to use the net proceeds of the offering for general corporate purposes. Following the completion of the transaction discussed above, AFGs adjusted financial leverage ratio will increase modestly, while its interest coverage ratio will remain largely unchanged. AFGs adjusted and unadjusted financial leverage ratios and interest coverage measures all remain well within AM Bests guidelines for AFGs current ratings and are expected to remain so over the near term.
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