S&P gives Travelers notes A

S&P said it assigned its A senior debt rating to Travelers Cos. Inc.'s proposed $500 million 30-year senior debt issuance.

Travelers intends to use the proceeds from the offering to retire $500 million of 5.8% senior notes maturing on May 15.

The agency said it expects no material change in financial leverage or fixed-charge coverage metrics.

“We view the group's financial flexibility as strong and expect financial leverage of about 20% and fixed-charge coverage above 10x in 2018, assuming normalized catastrophe losses contributing around five percentage points to the company's loss ratio,” S&P said in a news release.

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