S&P rates Progressive notes A+

Standard & Poor’s said it said assigned an A+ senior unsecured debt rating to Progressive Corp.’s new $400 million senior unsecured 30-year notes.

The proceeds will be used for general corporate purposes, S&P said.

On a pro forma basis as of Sept. 30, 2014, the agency said it expects the debt issuance to increase the group’s financial leverage to about 27% to 28%.

S&P also said it expects the group to continue to generate fixed-charge coverage ratios in excess of 10x, supported by strong and stable earnings generated by its operating insurance subsidiaries.

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