S&P rates Selective Insurance notes BBB

Standard & Poor's said it assigned its BBB rating to Selective Insurance Group Inc.'s proposed $50 million senior unsecured debt issue, which will mature in 2034.

The company intends to use the proceeds for general corporate purposes, including share repurchases, repayment of some of the existing outstanding debt, and capital contributions to its insurance affiliates.

Following this transaction, Selective will have total debt outstanding of about $263 million. Adjusted financial leverage (debt as a percent of total capitalization, excluding accumulated other comprehensive income from shareholders' equity) as of Sept. 30, 2004, pro forma for the new debt issue, is 25.3%. This is virtually unchanged from 25.7% at year-end 2003, reflecting a $24 million reduction of debt in the first nine months of 2004 and growth in shareholders' equity.

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