The counterparty credit rating on Allstate Corp. (Allstate) is based on the company's strong debt leverage, interest, and fixed-charge coverage; its diversified earnings stream that results from its core operating companies; strong cash flows from its operating companies; and the availability of excess capital at Kennett Capital. Partially offsetting these positive factors are the company's exposure to potential large catastrophic events from its property/casualty operations and recurring adverse asbestos reserve developments. Debt leverage (as measured by debt to total capital) remained virtually unchanged at 22.2% as of Sept. 30, 2005, when compared with 22.1% at year-end 2004. This was primarily because of the combination of lower debt and commercial paper borrowings, offset by a lower capital base. Allstate does not
