A.M. Best Assigns Debt Rating to Liberty Mutual Group, Inc.'s Junior Subordinated Debentures

Business Wire,  May 23, 2008  

Tags: A.M. Best Co.

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OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bb+" to the forthcoming issuance of $1.25 billion Series C 10.75% junior subordinated debentures of Liberty Mutual Group, Inc. (LMGI) (Boston, MA). The debentures have a scheduled maturity of 50 years. The anticipated settlement date is May 29, 2008. The outlook for the rating is stable.

Proceeds from the offering will be used to strengthen capitalization in preparation for LMGI's previously announced intent to acquire Safeco Corporation (Safeco) (Seattle, WA) (NYSE: SAF).

For a complete listing of Liberty Mutual Insurance Companies' (Liberty Mutual) and Liberty Insurance Holdings' (LIH) FSRs, ICRs and debt ratings, please see A.M. Best's press release of March 5, 2008. At that time, A.M. Best affirmed the financial strength ratings (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of Liberty Mutual and LIH. Additionally, A.M. Best affirmed the FSR of A (Excellent) and ICR of "a" of Liberty Life Assurance Company of Boston (Liberty Life).

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

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