S&P rates Old Republic notes BBB+

S&P said it assigned its BBB+ debt rating to Old Republic International Corp.'s proposed issue of senior unsecured fixed-rate notes due 2026.

The company expects to use the net proceeds for general corporate purposes, including repaying the outstanding convertible senior notes due in 2018, unless earlier converted.

Old Republic’s financial leverage and fixed-charge coverage pro forma for these issuances will remain less than 30% and more than 6 times, respectively, in 2016 and 2017, the agency said. It expects the leverage and coverage ratios to return to near 20% and greater than 8 times, respectively, once the 2018 notes mature.

S&P said the company continues to meet its expectations for operating performance.

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