S&P gives BBB to Liberty Mutual notes

Standard & Poor’s said it assigned its BBB issue-only debt rating to Liberty Mutual Group Inc.’s $750 million senior unsecured notes.

Liberty expects to use the proceeds from the notes to partly fund its adverse development cover transaction with National Indemnity Co. After the ADC deal was announced, S&P upgraded its ratings on Liberty to BBB with a stable outlook.

On a pro forma basis after the debt issuance, S&P expects the company’s financial leverage to be around 24% with fixed-charge coverage remaining at or above 8x as of year-end 2014.

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