Sep. 4, 2009 (Business Wire) -- A.M. Best Co. has assigned a debt rating of “a-” to the CAD 250 million Series 1 5.41% senior unsecured medium-term notes (the Notes) due September 3, 2019 of Intact Financial Corporation (IFC) (Toronto, Ontario) [TSX:IFC]. The outlook assigned to the rating is stable.

The Notes were issued on August 31, 2009 through a syndicate headed up by CIBC World Markets Inc. and TD Securities Inc. and are the direct unsecured obligation of IFC, ranking equally with all other unsecured and unsubordinated indebtedness of IFC. However, because IFC is a holding company, the Notes are effectively subordinated to all current and future liabilities, trade payables and all other indebtedness of IFC’s insurance subsidiaries. Pro forma unadjusted debt-to-total capital and interest coverage ratios are expected to remain well within A.M. Best’s guidelines for its debt ratings. Proceeds from the offering will be used for investment and other general corporate purposes.

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The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.