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A.M. Best Assigns Debt Rating to Nationwide Mutual Insurance Company?s Surplus Notes

Thu. August 13, 2009; Posted: 10:48 AM
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OLDWICK, N.J., Aug 13, 2009 (A. M. Best via COMTEX) -- NFS | Quote | Chart | News | PowerRating -- A.M. Best Co. has assigned a debt rating of ?a? to the $700 million 9.375 % fixed rate surplus notes due August 15, 2039 of Nationwide Mutual Insurance Company (Nationwide Mutual), which were issued August 10, 2009. The outlook for the rating is negative.

The negative outlook reflects the challenges faced by Nationwide Mutual?s management to rebuild surplus and increase risk-adjusted capitalization following the significant weather-related and investment losses of 2008 and the early 2009 privatization of Nationwide Financial Services Inc. Both companies are domiciled in Columbus, OH.

The debt ratings of ?a? with a negative outlook on Nationwide Mutual?s existing $1.5 billion in surplus notes are unchanged. Inclusive of this latest issuance, an aggregate of $2.2 billion in surplus notes is outstanding on Nationwide Mutual.

For Best?s Credit Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at http://www.ambest.com/ratings/methodology.

For full details for NFS click here.

    


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