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A.M. Best Co. has assigned a debt rating of “bbb+” to the $350 million 4.9% senior unsecured notes due July 1, 2022 issued under the existing shelf registration of
Markel Corporation (Markel) (Richmond, VA) [NYSE: MKL]. The assigned outlook is stable.
Markel will use the net proceeds from the sale of the notes to pre-fund the repayment at maturity of its 6.80% senior notes due on February 15, 2013 and for general corporate purposes, including the possible partial redemption of its 7.50% senior debentures due 2046. Markel’s total-to-capital ratio at March 31, 2012 measured approximately 27%, increasing to 33% when debt is measured relative to adjusted tangible capital. Financial leverage ratios will increase following the issuance of these notes to approximately 32% of total debt-to-capital and 39% of debt-to-tangible capital. After repayment of the 2013 notes, Markel’s total debt-to-capital is expected to be approximately 28% and its debt-to-tangible capital is expected to be approximately 35%.