Moody’s rates Travelers notes A2

Moody's Investors Service said it assigned an A2 rating to $700 million of senior unsecured notes, due 2047 to be issued by Travelers Cos., Inc.

The debt is being issued under the company's shelf registration.

Net proceeds are expected to be used to prefund roughly $450 million of 5.75% senior notes maturing in December 2017, as well as fund a portion of the purchase price of the acquisition of Simply Business, a leading digital provider of insurance policies to small businesses in the United Kingdom. If such acquisition were not to close for any reason, the net proceeds would be used for general corporate purposes.

The outlook is stable.

Moody’s said the ratings are based on Travelers’ leading position in many commercial, personal and specialty insurance lines of business, strong track record of core profitability, high-quality investment portfolio and strong internal liquidity and its solid risk-adjusted capitalization.

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