S&P rates Farmers notes BBB+

S&P said it assigned its BBB+ debt rating to Farmers Insurance Exchange's planned surplus notes due 2052.

“We rated the surplus notes two notches below our issuer credit rating on the company because they are subordinated to policyholder obligations and payments may be deferred due to regulatory restrictions,” the agency said in a press release.

The company intends to use the proceeds for general corporate purposes, which may include the redemption of its surplus notes callable in December 2022 and maturities coming due in May 2024.

The outlook is stable.

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