S&P rates Hanover bonds BBB-

Standard & Poor's said it assigned a BBB- senior debt rating to Hanover Insurance Group, Inc.'s proposed issue of approximately $200 million 7.5% senior unsecured notes due March 1, 2020. The company's counterparty credit rating remains BBB-.

The outlook is stable.

The company will use the proceeds for general corporate purposes, including improving financial flexibility, strategic growth by way of organic means or acquisitions and share repurchases.

The agency said the ratings reflect Hanover's strong competitive position, the successful execution of management's strategy to refocus the company on its property/casualty business, improved operating performance and a very strong capital position.

Hanover's geographic concentration and relatively high expense structure remain weaknesses and limiting rating factors, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.