Fitch rates Selective notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Selective Insurance Group, Inc.'s $300 million issuance of senior unsecured notes due in 2049.

The rating is equivalent to the ratings on Selective's currently outstanding senior notes.

The proceeds will be used to redeem the company's outstanding $185 million 5 7/8% senior notes due 2043, Fitch said, with the remaining balance used for general corporate purposes.

The ratings reflect expectations that Selective's pro forma financial leverage ratio will increase to 23.7% following the debt issuance, compared with 19.7% in 2018, the agency said.

Fitch also said it expects financial leverage will be maintained at lower than 25%.

The company has strong financial performance and strong capitalization with growth in shareholders' equity, the agency said.

The ratings also reflect its strong competitive position as a regional commercial lines writer with underwriting diversification derived from personal lines and excess and surplus business, Fitch said.

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