S&P rates Selective notes BBB

Standard & Poor's said it assigned a BBB rating to Selective Insurance Group Inc.'s up to $200 million senior unsecured fixed-rate notes due 2043.

Selective has an issuer credit rating of BBB with a negative outlook.

The ratings reflect the company's strong competitive position, strong relationships with independent agents and strong financial flexibility, S&P said.

Partially offsetting these favorable rating factors are the company's weakened capital position, weak operating performance in personal lines and increased volatility due to catastrophe losses, the agency said.

The ratings also are affected by its geographic concentration in the Northeast, particularly New Jersey, S&P said.

The company intends to use the proceeds to redeem its 7.5% junior subordinated notes due 2066 and for general corporate purposes, which may include capital contributions to its insurance subsidiaries, the agency said.

The company's operating profitability has deteriorated in the past couple of years due to significant catastrophe events with 2011 results being the worst year of such losses for the company, S&P said.

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