Moody's rates Old Republic notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to $400 million of senior notes being issued by Old Republic International Corp. The outlook is stable.

Proceeds are expected to be used for general corporate purposes, including the making of additional capital contributions to the group's insurance company subsidiaries as may be necessary.

The agency said Old Republic's senior debt rating reflects diversified revenue and earnings from its general property and casualty and title subsidiaries, good profitability, a moderate use of financial leverage and high cash flow coverage metrics.

Offsetting these strengths are exposure to certain volatile long-tail commercial lines including workers' compensation and general liability, somewhat constrained financial flexibility given the potential for volatility at the group's run-off mortgage insurance operations and the volatility of the title operations given reliance on mortgage refinance and resale transactions, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.