Moody’s: Travelers notes A2

Moody’s Investors Service said it assigned an A2 rating to about $500 million of senior unsecured notes due 2046 to be issued by the Travelers Cos., Inc.

The debt is being issued pursuant to the company’s shelf registration.

The proceeds will be used to prefund $400 million of senior unsecured notes due in June 2016, as well as for general corporate purposes, including the potential redemption of the company’s 6.25% fixed- to floating-rate junior subordinated debentures due 2067.

The outlook is stable.

The ratings are based on the group’s leading position in many commercial, personal and specialty insurance lines of business in the United States, its strong track record of core profitability, high quality investment portfolio and strong internal liquidity, Moody’s said.

Tempering these strengths are the company’s underwriting exposures to long-tail casualty lines with sensitivities to claim litigation and inflation, exposure to natural and man-made catastrophes and continued competitive conditions, the agency said.

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