Travelers 2007 Annual Report Download - page 41

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Debt Ratings
The following table summarizes the current debt, preferred stock and commercial paper ratings of
the Company and its subsidiaries as of February 21, 2008. The table also presents the position of each
rating in the applicable agency’s rating scale.
A.M. Best Moody’s S&P Fitch
Senior debt ............ a(7th of 22) A3 (7th of 21) A(7th of 22) A (6th of 24)
Subordinated debt ....... bbb+ (8th of 22) Baa1 (8th of 21) BBB (9th of 22) A(7th of 24)
Junior subordinated debt . . bbb (9th of 22) Baa1 (8th of 21) BBB(10th of 22) A(7th of 24)
Trust preferred securities . . bbb (9th of 22) Baa1 (8th of 21) BBB(10th of 22) A(7th of 24)
Preferred stock ......... bbb (9th of 22) Baa2 (9th of 21) BBB(10th of 22) —
Commercial paper. ...... AMB-1 (2nd of 6) P-2 (2nd of 3) A-2 (3rd of 10) F-1 (2nd of 7)
Rating Agency Actions
The following rating agency actions were taken with respect to the Company in 2007 and through
February 21, 2008:
• On March 5, 2007, A.M. Best assigned a debt rating of ‘‘bbb’’ to the $1.0 billion junior
subordinated debentures due 2067 issued by the Company in March 2007.
• On March 5, 2007, Moody’s assigned a debt rating of ‘‘Baa1’’ to the $1.0 billion junior
subordinated debentures due 2067 issued by the Company in March 2007.
• On March 5, 2007, S&P assigned a debt rating of ‘‘BBB’’ to the $1.0 billion junior subordinated
debentures due 2067 issued by the Company in March 2007.
• On March 5, 2007, Fitch announced that it expected to assign a debt rating of ‘‘BBB+’’ to the
$1.0 billion junior subordinated debentures due 2067 issued by the Company in March 2007.
Subsequently, on April 11, 2007, Fitch assigned the ‘‘BBB+’’ debt rating to these junior
subordinated debentures.
• On May 2, 2007, Moody’s affirmed all ratings for the Company and changed the outlook for all
ratings to ‘‘positive’’ from ‘‘stable.’’
• On May 21, 2007, Fitch upgraded its long-term issuer and senior debt ratings of the Company to
‘‘A’’ from ‘‘A’’; its junior subordinated debt ratings and trust preferred securities ratings both to
‘‘A’’ from ‘‘BBB+’’; and its commercial paper ratings to ‘‘F-1’’ from ‘‘F-2.’’ Additionally, Fitch
upgraded its insurer financial strength (IFS) rating on the Company’s insurance company
subsidiaries to ‘‘AA’’ from ‘‘AA’’. The ratings outlook was stable.
• On May 23, 2007, Fitch announced that it expected to assign a debt rating of ‘‘A’’ to the
Company’s aggregate $1.5 billion senior unsecured notes due 2012, 2017 and 2037. Subsequently,
on May 25, 2007, Fitch assigned the ‘‘A’’ debt rating to these senior notes. The outlook for the
ratings was stable.
• On May 23, 2007, A.M. Best assigned a debt rating of ‘‘a’’ to the Company’s aggregate
$1.5 billion senior unsecured notes due 2012, 2017 and 2037. The outlook for the ratings was
stable.
• On May 23, 2007, Moody’s assigned a debt rating of ‘‘A3’’ to the Company’s aggregate
$1.5 billion senior unsecured notes due 2012, 2017 and 2037. The outlook for the ratings was
positive.
• On May 23, 2007, S&P assigned a debt rating of ‘‘A’’ to the Company’s aggregate $1.5 billion
senior unsecured notes due 2012, 2017 and 2037. The outlook for the ratings was stable.
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