Moody's rates Liberty Mutual notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to new senior notes due 2049 issued by Liberty Mutual Group Inc.

The 30-year notes rank pari passu with the issuer's other senior unsecured obligations, Moody's said.

The proceeds from the offering are expected to be used for general corporate purposes, which may include repayment of outstanding debt and capital contributions to the company's subsidiaries, the agency said.

The outlook is stable.

The ratings are based on the group's strong market position as a top three U.S. personal and casualty insurer and a top five global personal and casualty insurer and its broad diversification across products and geographies, Moody's said.

The company utilizes multiple distribution platforms to write its personal, commercial and specialty lines in the U.S. and internationally, the agency said.

These strengths are tempered by Liberty's elevated operational and financial leverage relative to tangible capital, significant exposure to catastrophe losses and potential for adverse reserve development on its long-tail casualty lines, Moody's said.

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