1. AM Best assigned a 'bbb+' rating to THG's $500 million notes. 2. The rating outlook is stable, affirming company ratings previously. 3. Proceeds will repay debt and fund corporate purposes. 4. THG's financial leverage remains within AM Best's guidelines.
The positive credit rating suggests strong financial health. Companies with solid credit ratings often attract more investment and boost share prices, similar to past ratings affirmations benefiting stock performance.
A stable credit rating is significant for investor perception and financing options. While the direct impact on stock price may not be drastic, it enhances trust in the company's financial stability.
The immediate usage of proceeds for debt repayment indicates short-term liquidity improvement. In the past, similar financial maneuvers led to increased investor confidence in the companies involved.
AM Best has assigned a Long-Term Issue Credit Rating of "bbb+" (Good) to the recently issued USD 500 million, 5.5% senior unsecured notes due 2035, issued by The Hanover Insurance Group, Inc. (The Hanover) (headquartered in Worcester, MA) (NYSE:THG). The outlook assigned to this Credit Rating (rating) is stable.
The ratings of The Hanover and its subsidiaries were previously affirmed on July 31, 2025 (see related press release).
The Long-Term Issuer Credit Rating of The Hanover, as well as the ratings of its operating subsidiaries and all other debt issuance, remain unchanged with this issuance. The Hanover plans to use the net proceeds of the offering to repay its upcoming outstanding debt maturities, as well as for general corporate purposes. Financial leverage and coverage measures are within AM Best's guidelines for this rating and are expected to remain so following the new debt issuance.
This press release relates to Credit Ratings that have been published on AM 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 AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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