Fitch gives W. R. Berkley notes BBB-

Fitch Ratings said it assigned a BBB- rating to W. R. Berkley Corp.’s offering of subordinated notes maturing in 2059. The rating is equivalent to the ratings assigned to Berkley’s outstanding subordinated notes.

Berkley is selling up to $300 million of subordinated notes maturing in 2059. “The notes are rated three notches below Berkley’s long-term issuer default rating, reflecting two notches for the baseline recovery assumption of ‘Poor’ and one additional notch reflecting the ‘Minimal’ non-performance risk assessment. The notes include an interest deferral feature at the option of the issuer for up to five years,” Fitch said in a press release.

Based on the agency’s rating criteria, the hybrid notes weren’t not assigned any equity credit like the existing subordinated notes.

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