Moody's rates Travelers notes A3

Moody's Investors Service said it assigned A3 ratings to the Travelers Cos. Inc.'s $1.5 billion of senior unsecured notes, which are expected to be issued in five-year, 10-year and 30-year tranches.

The outlook is positive.

Proceeds from the offering are expected to be applied to retire other corporate debts later in 2007 and for general corporate purposes.

The agency said the A3 rating on the notes is based on the company's significant franchise strength, its strong position in many commercial and personal property and causality insurance market segments, as well as its high-quality investment portfolio, solid capitalization, moderate adjusted financial leverage on a tangible basis and good liquidity.

Tempering these strengths are general concerns related to the risk of some further adverse loss development for runoff business and latent liabilities and meaningful exposures to natural and man-made catastrophe losses, Moody's said.

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