Fitch: W.R. Berkley notes BBB-, ratings on watch

Fitch Ratings said it placed W. R. Berkley Corp.’s ratings on Rating Watch negative, including its A- issuer default rating and existing senior and subordinated debt ratings.

Fitch also said it assigned a BBB- rating on negative watch to the company’s new $290 million issuance of 5.75% subordinated notes due in 2056.

The ratings on negative watch include the BBB+ ratings on its $150 million 6.15% senior debt due 2019, $300 million 7.375% senior debt due 2019, $300 million 5.375% senior debt due 2020, $76 million 8.7% senior debt due 2022, $350 million 4.625% senior debt due 2022, $250 million 6.25% senior debt due 2037, $350 million 4.75% senior debt due 2044 and $350 million 5.625% subordinated debentures due 2053.

The negative watch also extends to the BBB- rating on the company’s $100 million 5.9% subordinated debentures due 2056.

The negative watch reflects an expected increase in financial leverage resulting from the recently announced issuance of $290 million of subordinated debentures, Fitch said.

Should the company not demonstrate an improving trend in financial leverage over the next six- to 12 months, all of its holding company ratings will likely be downgraded by one notch, the agency added.

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