A.M. Best Assigns Debt Rating To American Financial Group, Inc.’s Forthcoming Senior Notes

A.M. Best Co. has assigned a debt rating of “bbb+” to the forthcoming 30-year, $125 million 5.75% senior unsecured notes of American Financial Group, Inc. (AFG) (Cincinnati, OH) [NYSE:AFG]. The assigned outlook is positive. AFG’s existing financial strength, issuer credit and debt ratings are unchanged.

A.M. Best anticipates the proceeds from this issuance will be used to redeem the entire aggregate principal amount of $115 million 7.125% senior debentures due 2034, plus any accrued and unpaid interest. The remaining proceeds will be used for general working capital purposes.

While AFG maintains financial leverage that is in line with its current ratings, the additional liquidity provided through access to capital markets and lines of credit enhances the financial flexibility of its operating subsidiaries.

On March 29, 2012, A.M. Best affirmed the ICR of “bbb+” with a positive outlook for AFG.

The methodology used in determining these ratings is Best’s Credit Rating Methodology , which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Insurance Holding Company and Debt Ratings.” Best’s Credit Rating Methodology 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 © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Copyright Business Wire 2010

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