Fitch rates W. R. Berkley notes BBB-

Fitch Ratings said it assigned a BBB- rating to W. R. Berkley Corp.'s $250 million of subordinated notes maturing in 2060. The rating is equivalent to the ratings assigned to Berkley's other subordinated notes.

“The notes are rated three notches below Berkley's long-term issuer default rating (IDR), reflecting two notches for the baseline recovery assumption of poor and one additional notch reflecting the minimal non-performance risk assessment. The notes include an interest deferral feature at the option of the issuer for up to five years. Based on Fitch's rating criteria, this hybrid debt issuance was not assigned any equity credit, similar to the existing subordinated notes,” Fitch said in a press release.

Proceeds are expected to be used in the redemption of the remaining $150 million of subordinated notes due 2053 and general corporate purposes.

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