S&P Trims S-T Counterparty, CP Ratings on Allstate (ALL) to 'A-2'
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S&P Global Ratings said it lowered its short-term counterparty credit rating and commercial paper (CP) ratings on Allstate Corp. to 'A-2' from 'A-1'.
"We are revising the short-term counterparty credit and CP ratings on Allstate Corp. due to a criteria misapplication of our Methodology For Linking Short-Term and Long-Term Ratings for Corporate, Insurance, and Sovereign Issuers (published May 7, 2013, on RatingsDirect)," said S&P Global Ratings credit analyst Tracy Dolin. We had previously applied the group credit profile liquidity score of exceptional to the 'A-' long-term counterparty credit rating to determine a short-term counterparty credit rating of 'A-1'. In fact, our criteria should have applied to Allstate's nonoperating holding company (NOHC) liquidity score of adequate, because its CP program is issued out of the holding company. Our criteria never assess an NOHC's liquidity as exceptional or strong. In effect, the combination of a long-term rating of 'A-' and a NOHC liquidity score of adequate translates into a short-term counterparty credit rating of 'A-2'.
Our 'A-2' short-term rating on Allstate Corp. depends on the combination of an adequate liquidity evaluation on the NOHC and an 'A-' long-term counterparty credit rating.
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