S&P rates Allstate notes BBB

Standard & Poor's said it assigned a BBB debt rating to Allstate Corp.'s up to $1 billion issue of junior subordinated debentures due 2053.

The debentures are expected to qualify for intermediate content treatment under the criteria for hybrid securities based on a review of preliminary documentation, S&P said.

The proceeds will be used for general corporate reasons, including share repurchases.

The ratings are based on the company's very strong competitive position and well-recognized franchise in the U.S. personal-lines sector, S&P said.

Strong, but volatile operating results, capital adequacy that is deficient at the rating level and an aggressive capital-management strategy offset the positive factors, the agency said.

Allstate also has earnings volatility from exposure to catastrophe, S&P said, and investment-portfolio losses and competitive pressures in its standard auto book because of catastrophe-reduction efforts.

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