A.M. Best Assigns Issue Credit Rating to American Financial Group, Inc.’s Senior Unsecured Notes

A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “a-” to the recently announced $350 million 4.50% 30-year senior unsecured notes of American Financial Group, Inc. (AFG) (Cincinnati, OH) [NYSE: AFG]. The outlook assigned to the Credit Rating (rating) is stable. AFG’s Long-Term Issuer Credit Rating of “a-”, its existing Long-Term IRs and the ratings of its operating insurance subsidiaries are unchanged.

The proceeds from this issuance will be used to redeem AFG’s $230 million aggregate outstanding principal amount of 6.375% senior notes due June 2042, which become redeemable at AFG’s option, beginning on June 12, 2017. The balance of the proceeds are expected to be used for general corporate purposes, including the redemption of all or a portion of AFG’s $125 million aggregate outstanding principal amount of 5.75% senior notes due August 2042, which AFG intends to redeem when these notes become redeemable at AFG’s option, beginning on Aug. 25, 2017. Assuming that the planned refinancing transactions are executed as currently contemplated, AFG’s financial leverage essentially will be unchanged compared with the levels reported at March 31, 2017. Interest coverage may improve modestly due to the lower coupon on the new debt. AFG’s leverage and coverage metrics remain within A.M. Best’s guidelines to support its current ratings.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. BestGreg DickersonSenior Financial Analyst+1 908 439 2200, ext. 5161gregory.dickerson@ambest.comorJennifer Marshall, CPCU, ARMDirector+1 908 439 2200, ext. 5327jennifer.marshall@ambest.comorChristopher SharkeyManager, Public Relations+1 908 439 2200, ext. 5159christopher.sharkey@ambest.comorJim PeavyDirector, Public Relations+1 908 439 2200, ext. 5644james.peavy@ambest.com