Fitch Ratings assigned a 'BBB+' long-term rating to Selective Insurance Group, Inc.'s issuance of $400 million 5.9% notes due 2035. This rating is consistent with the rating on Selective's existing senior unsecured notes.
The company intends to use the net proceeds from this offering for general corporate purposes, including supporting organic growth opportunities. This financing move is expected to enhance Selective's financial flexibility.
Fitch anticipates that the financial leverage will increase to 21% following this issuance, which aligns with the current rating sensitivities. The notes are rated one notch below Selective's Long-Term Issuer Default Rating (IDR, A-/Stable) due to below-average recovery expectations.
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