Standard & Poor’s and Fitch Ratings said they may cut their ratings on Liberty Mutual as a result of the company’s proposed $6.12 billion cash takeover of Safeco Corp.
S&P and Fitch said the deal would alter Liberty Mutual’s ratios of cash to debt. Both rating agencies imply Liberty Mutual has “lower-medium grade” credit, the Associated Press reported.It the deal closes as planned in the third quarter, Safeco’s debt would assume Liberty Mutual’s credit ratings. The combined firm would be the nation’s fifth largest property/casualty insurer.
