American Financial Group Inc. 5.25% Senior Unsecured Notes Due 2030 Rated 'BBB+'

NEW YORK (S&P Global Ratings) March 26, 2020--S&P Global Ratings today said it that it has assigned its 'BBB+' debt rating to American Financial Group Inc.'s (AFG) 5.250% $300 million senior unsecured notes due 2030.
We expect AFG to use the proceeds from the offering for general corporate purposes including the potential repurchase of shares, allowing the company to better optimize its cost of capital by taking advantage of a more-favorable interest rate environment. The proposed issuance raises financial leverage to 22%-24%, up from 21% as of year-end 2019, but this is still well supported by its strong diversified earnings capabilities with proven stability through underwriting cycles. We expect financial leverage to remain in the low- to mid-20% area--in line with historical capital management with fixed-charge coverage near 8x.
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