Allstate Corp. has entered into an agreement to acquire SquareTrade Inc. for about $1.4 billion in cash. After the deal closes, we believe the consolidated group will maintain very strong capitalization redundant at the 'AA' level. We are affirming all our ratings on Allstate and its operating companies. At the same time, we are assigning our 'A-' issue-level rating to the company's proposed senior debt issuance. The outlook is stable reflecting our expectation that Allstate Corp. will maintain capital redundancy at the 'AA' level with operating performance consistent with our base-case forecast. On Dec. 1, 2016, S&P Global Ratings affirmed its 'A-/A-2' counterparty credit rating on Allstate Corp. (NYSE:ALL) and its 'AA-' financial strength ratings on Allstate's core operating subsidiaries.
