S&P: W.R. Berkley notes BBB-

Standard & Poor’s said it assigned a BBB- rating to W.R. Berkley Corp.’s subordinated notes due 2056, reflecting the subordinated effect of deferrable coupons.

The proceeds will be used for general corporate purposes.

The agency also said it expect much of the proceeds to be earmarked to repay its senior notes due 2019.

The company aims to optimize its capital structure during the next 24 months, S&P said, with financial leverage expected to be less than 35%.

The ratings reflect the group’s strong business risk profile, owing to its low volatility, diversified businesses and market position in the low-limit specialty business, the agency said.

Its strong financial risk profile is based on a view of strong capital and earnings, which are expected to continue during the next few years, S&P said.

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