S&P rates Liberty Mutual notes BBB

S&P said it assigned its BBB senior debt rating to Liberty Mutual Group Inc.'s proposed fixed-rate senior notes due 2029.

These notes will be issued as part of an ongoing exchange offer for the company's $600 million 5% senior notes due 2021, its $750 million 4.95% senior notes due 2022 and its $1 billion 4.25% senior notes due 2023.

The company has indicated that it will issue a minimum of $300 million and a maximum of $1 billion of the proposed notes, depending on the amount of notes tendered.

“The exchange is expected to have no impact on the company's financial leverage and an immaterial impact on fixed-charge coverage. The purpose of the exchange is to extend the maturity structure of the company's debt obligations,” S&P said in a news release.

“We view the group's financial flexibility as adequate, and for the 2018-2020 period we expect financial leverage to remain around 24% to 27% and fixed-charge coverage of 6x to 7x.”

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