A.M. Best has assigned an issue rating of “a+” to The Travelers Companies, Inc.’s (TRV) (headquartered in New York, NY) [NYSE:TRV] recently announced $500 million 3.75% senior unsecured notes due 2046. The outlook assigned to the rating is stable. The existing ratings of TRV and its subsidiaries are unchanged.

The proceeds from the sale of the notes will be used to pay off the existing $400 million 6.25% senior unsecured notes, due June 20, 2016, as well as for general corporate purposes. The debt offering is pursuant to a shelf registration statement filed with the Securities and Exchange Commission. While Travelers’ financial leverage will modestly increase, it will remain within A.M. Best’s guidelines to support its current ratings. A.M. Best anticipates Travelers’ coverage ratios to remain strong and well supportive of the current rating.

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