Fitch to give Progressive notes A

Fitch Ratings said it expects to assign an A rating to Progressive Corp.'s $350 million issuance of senior unsecured notes maturing in 2044.

The new notes' rating is equivalent to the ratings on Progressive's existing senior debt.

The company intends to use the net proceeds from the sale of the senior notes for general corporate purposes.

Fitch said its expected rating reflects Progressive's strong balance sheet and its belief that the company's financial leverage, as measured by total debt to total capital, will remain within a reasonable range for the rating category in the near-term.

Progressive's financial leverage at March 31, 2014 was 22.7%. Pro forma leverage including the additional debt will temporarily increase to 25.9%, within Fitch's expectations.

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