Moody's rates Travelers notes A2

Moody's Investors Service assigned A2 ratings to the senior notes to be issued by Travelers Cos., Inc. in two tranches, with $500 million due in 2020 and $750 million due in 2040.

The outlook is stable.

Proceeds from the offering are expected to be used for general corporate purposes, including funding the consummation of the company's tender offer for any or all of its $1 billion 6.25% fixed-to-floating rate outstanding junior subordinated debentures. Proceeds will also be used to pay a portion of outstanding debt as it matures over the next few years.

The ratings reflect Travelers' robust franchise in U.S. personal, commercial and specialty property-liability lines of business, and its commanding presence in the independent agency distribution system, as well as its strong and sustained core operating performance, asset quality, and risk-adjusted capitalization measures, Moody's said.

Travelers' strong earnings and cash flow coverage measures, and its liquidity are also supportive of the rating, Moody's added.

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