|[October 04, 2013]
A.M. Best Assigns Debt Rating to The Navigators Group, Inc.'s Newly Issued Senior Notes
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has assigned a debt rating of "bbb+" to the newly
issued $265 million 5.75% senior unsecured notes due 2023 of The
Navigators Group, Inc. (Navigators) (New York, NY) [NASDAQ:
NAVG]. The outlook assigned is stable. Navigators' existing
financial strength, issuer credit and debt ratings are unchanged.
Navigators intends to use a portion of the proceeds to immediately
retire its $115 million par value 7.0% senior unsecured notes, which are
due on May 1, 2016. The balance of the proceeds will be used for general
While Navigators' financial leverage ratio will be temporarily increased
from its historical norms upon issuance, the impact on financial
leverage is expcted to improve in the short term given Navigators'
plans to retire the 2016 debt immediately. Navigators' financial
leverage and interest coverage ratios remain well within A.M. Best
guidelines for its current rating even during the brief period when both
debt issues are outstanding.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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