S&P rates Alleghany notes BBB

Standard & Poor's said it assigned a BBB rating to Alleghany Corp.'s offering of $400 million of senior unsecured notes due 2022.

The counterparty credit rating is BBB.

The outlook is stable.

The proceeds will be used to increase funds and liquidity at the holding company and for general corporate purposes.

Alleghany's debt leverage is expected to increase to about 22%, which would remain supportive of the current ratings, S&P said.

Leverage could improve in the near- to medium-term due to a build-up of retained earnings, considering that Alleghany does not maintain a policy of cash dividends, the agency said.

The ratings also reflect its strong competitive position in reinsurance and specialty insurance markets, its record of strong underwriting and operating performance and its strong capitalization, S&P said.

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