S&P rates American Financial debt BBB-

Standard & Poor's said it assigned its BBB- rating to American Financial Group Inc.'s (AFG's) planned issuance of subordinated debentures.

These issuances have fixed interest rates and are due in 2054.

The agency rated the debentures two notches below the issuer credit rating – one notch for subordination and another notch for deferability of interest.

These debentures will receive intermediate equity credit under our hybrid criteria. With this issuance, S&P expects American Financial’s financial leverage to be modestly below 19% and its fixed-charge coverage to be slightly above 7 times and well within expectations.

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