S&P rates Markel notes BBB

Standard & Poor's said that it assigned an unsolicited BBB senior debt rating to Markel Corp.'s $250 million of 10-year senior notes.

The action reflects the expectations that, based on Markel's March 31 financial results, the company's pro forma financial leverage will increase to 28% from 24%, the agency said.

The proceeds will be held at the holding company to support general and corporate activities, including acquisitions.

The unsolicited BBB counterparty credit rating on Markel reflects its strong competitive position in the U.S. excess and surplus and specialty admitted lines of business, its strong capital that is well redundant for the rating level and its strong liquidity, the agency added.

Partly offsetting these strengths are the company's deteriorating operating performance, which is attributed to soft market conditions, and its high expense ratio relative to peers, the agency said.

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