On June 15, 2006, Standard&Poor's Ratings Services assigned its 'A-' senior debt rating to St. Paul Travelers Cos. (NYSE:STA; A-/Stable/A-2) $800 million senior unsecured note issues maturing in 2016 and 2036. The company intends to use the net proceeds from this issue to repay $206 million of senior notes maturing in 2006 and to redeem about $593 million of subordinated debentures before year-end 2006. The rating is based on the St. Paul Travelers group's very strong market position, substantially improved operating performance, very strong operating company capitalization, and conservative financial leverage and coverage ratios. The ratings on the group also reflect our opinion that the reserving and integration issues arising from the merger of St. Paul Cos. Inc.
