Fitch rates Travelers notes A

Fitch Ratings said it assigned an A rating to the Travelers Cos., Inc.'s $500 million issuance of 30-year senior unsecured notes.

The ratings are equivalent to the ratings on Travelers's currently outstanding senior notes, Fitch said.

The agency said it anticipates that Travelers will use the proceeds from the issuance to repay $500 million in outstanding senior notes due June 2, 2019.

The ratings reflect expectations that Travelers's financial leverage ratio will be less than 24% following the debt issuance, compared with about 22% at year-end 2018, Fitch said.

Financial leverage remains within management's stated range and lower than the agency's 25% rating sensitivity, the agency said.

The ratings are supported by very strong capitalization and a history of favorable reserve experience, Fitch said.

The company's business profile and financial performance support the current ratings and the company's position as a top-tier competitor in the U.S. property/casualty insurance market, the agency said.

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