Fitch assigns A to Progressive notes

Fitch Ratings said it assigned an A rating to Progressive Corp.’s $850 million issuance of senior notes maturing in 2047.

Net proceeds are expected to be used to redeem $564 million of its junior subordinated debentures due 2067. The remaining net proceeds are expected to be used for general corporate purposes.

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

Fitch said Progressive's financial leverage as of Feb. 28 was 27.1%. Pro forma leverage as of the same date, including the additional debt and expected redemption of the company's junior subordinated debentures, will increase to 28.8%, within the agency’s expectations.

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