A.M. Best Co. in Oldwick, N.J., assigned indicative ratings Thursday of a-minus for senior debt, bbb-plus for subordinated debt, and bbb for the preferred stock of St. Paul Travelers Cos. Inc.'s new universal shelf registration, which was filed Wednesday.
The ratings agency also assigned an indicative "bbb" rating to trust-preferred securities to be issued by St. Paul Travelers Capital Trust II, III, IV, and V. The debt and financial strength ratings of St. Paul Travelers and its subsidiaries were unchanged. All ratings have a stable outlook, with the exception of those for one insurance subsidiary.
This week's shelf registration replaces a $1.7 billion universal shelf filed in January 2003 by St. Paul Cos. Inc. before its purchase of the Travelers property/casualty operation.
The company said it does not intend to use the new shelf registration to a significant degree in the near term, except perhaps to replace maturing debt.
St. Paul Travelers' debt to total capital at Sept. 30 was 20.8%, down from 24.5% last Dec. 31. Debt reduction and solid net income despite significant catastrophe losses resulting from hurricanes Katrina and Rita in the third quarter produced the debt-ratio improvement, according to A.M. Best.
