A.M. Best Assigns Debt Rating To RLI Corp.’s Newly Issued Senior Notes

A.M. Best Co. has assigned a debt rating of “a” to the newly issued $150 million 4.875% senior unsecured notes due 2023 of RLI Corp. (RLI) (NYSE:RLI) (Peoria, IL). The outlook assigned is stable. All remaining ratings of RLI and its subsidiaries are unchanged.

RLI intends to use a portion of the proceeds to repay $100 million of outstanding senior notes, which mature in January 2014. The balance of the proceeds will be used for general corporate purposes.

While RLI’s financial leverage ratio is temporarily increased from its historically modest norms, financial leverage is expected to improve in the short term given RLI’s plans to retire existing debt by the end of the year. RLI’s financial leverage ratio and fixed charge coverage remain well within A.M. Best’s guidelines for its current rating.

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. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Copyright Business Wire 2010

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