NEW YORK (Standard&Poor's) May 3, 2007--Standard&Poor's Ratings Services said today it has assigned its 'A-' rating to Allstate Corp.'s (NYSE:ALL; Allstate) proposed junior subordinated debentures with scheduled maturities in 2037 and 2057, respectively. The debentures qualify for equity treatment under Standard&Poor's criteria for hybrid securities, based on a review of preliminary documentation. The company intends to use the estimated $1 billion net proceeds from this issue to repurchase common equity. The assigned rating is based on the 'A+' counterparty credit rating on Allstate, which in turn is based on the company's diversified and favorable earnings, very strong interest and fixed-charge metrics, very strong liquidity and financial flexibility, and excess capital at Kennett Capital, a
