Business Wire | Aug 20, 2020 04:16PM EDT

AM Best Assigns Issue Credit Rating to The Hanover Insurance Group, Inc.'s Recently Announced Senior Unsecured Notes

Aug. 20, 2020

OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 20, 2020--AM Best has assigned a Long-Term Issue Credit Rating of "bbb+" to the new $300 million 2.5% 10-year senior unsecured notes offering, to be issued by The Hanover Insurance Group, Inc. (THG) (headquartered in Worcester, MA) [NYSE: THG]. The outlook assigned to this Credit Rating (rating) is stable.

Proceeds from the sale of the senior unsecured notes will be used to repurchase, redeem, repay or otherwise retire the $175 million outstanding aggregate principal balance of THG's 6.35% subordinated deferrable debentures due March 30, 2053. Any remaining net proceeds will be used for general corporate purposes. THG maintains financial leverage and coverage measures that are well within AM Best's guidelines for this rating and are expected to remain so following the new debt issuance. The existing ratings of THG and its subsidiaries are unchanged.

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 media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright (c) 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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CONTACT: Michael T. Venezia Senior Financial Analyst +1 908 439 2200, ext. 5034 michael.venezia@ambest.com Christopher Sharkey Manager, Public Relations +1 908 439 2200, ext. 5159 christopher.sharkey@ambest.com Jacqalene Lentz, CPA Director +1 908 439 2200, ext. 5762 jacqalene.lentz@ambest.com Jim Peavy Director, Public Relations +1 908 439 2200, ext. 5644 james.peavy@ambest.com