* Top rating of A++ (Superior) affirmed for property casualty group and subsidiaries * New rating of senior debt assigned at "aa" (Very Strong)
CINCINNATI, Sep 4, 2001 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) and subsidiaries recently received new and affirmed ratings from the A.M. Best Company, a leading insurance rating authority and information source.The A++ financial strength rating was affirmed on August 30 for the property casualty insurance group of The Cincinnati Insurance Companies and for each member company of the group, including The Cincinnati Insurance Company, The Cincinnati Casualty Company and The Cincinnati Indemnity Company.
Best's rating rationale for The Cincinnati Insurance Companies cited superior capitalization, favorable historical profitability, strong regional franchise, modest financial leverage and excellent cash flow.
The Cincinnati Insurance Companies have consistently earned Best's highest available ratings since 1955. Currently, Best analyzes approximately 1,800 property casualty groups or "rating units," awarding the A++ rating to only the top 2.3 percent.
John J. Schiff Jr., CPCU, chairman and chief executive officer of Cincinnati Financial Corporation and The Cincinnati Insurance Companies, commented, "By maintaining a strong financial condition and operating performance, we achieve prized ratings that make us the informed consumers' choice. This gives a distinct marketing advantage to the independent agents who offer our policies to businesses and families in their communities."
Best, which introduced its debt rating service in February of 1999, also rated Cincinnati Financial's existing senior debt for the first time on August 30, 2001. The "aa" (Very Strong) debt rating applies to $420 million of senior debentures due 2028 and $14 million of convertible senior debentures due 2002. This rating is awarded to issuers with a "very strong capacity and willingness to meet the terms of the obligation."
Schiff noted, "This new Best debt rating is a positive comment on our enterprise. Their opinion carries weight in the credit marketplace because their approach is both qualitative and quantitative, based on an in-depth analysis of underlying business fundamentals, risks and future prospects."
Cincinnati Financial Corporation offers property and casualty insurance, our main business, through The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. The Cincinnati Life Insurance Company markets life, disability income and long term care insurance and annuities. CFC Investment Company supports the insurance subsidiaries and their independent agent representatives through commercial leasing and financing activities. CinFin Capital Management provides investment management services to institutions, corporations and individuals. For additional information, please visit our Web site at www.cinfin.com .
SOURCE Cincinnati Financial Corporation
CONTACT: Kenneth W. Stecher, Chief Financial Officer of Cincinnati
Financial, +1-513-603-5236