A.M. Best Assigns Debt Rating to The Navigators Group, Inc.’s Newly Issued Senior Notes

  A.M. Best Assigns Debt Rating to The Navigators Group, Inc.’s Newly Issued
  Senior Notes

Business Wire

OLDWICK, N.J. -- October 4, 2013

A.M. Best Co. has assigned a debt rating of “bbb+” to the newly issued $265
million 5.75% senior unsecured notes due 2023 of The Navigators Group, Inc. 
(Navigators) (New York, NY) [NASDAQ: NAVG].  The outlook assigned is stable.
Navigators’ existing financial strength, issuer credit and debt ratings are

Navigators intends to use a portion of the proceeds to immediately retire its
$115 million par value 7.0% senior unsecured notes, which are due on May 1,
2016. The balance of the proceeds will be used for general corporate purposes.

While Navigators’ financial leverage ratio will be temporarily increased from
its historical norms upon issuance, the impact on financial leverage is
expected to improve in the short term given Navigators’ plans to retire the
2016 debt immediately. Navigators’ financial leverage and interest coverage
ratios remain well within A.M. Best guidelines for its current rating even
during the brief period when both debt issues are outstanding.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at

A.M. Best Company is the world's oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.

       Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


A.M. Best Co.
Adrienne Tortoriello
Senior Financial Analyst
(908) 439-2200, ext. 5088
Jennifer Marshall
Assistant Vice President
(908) 439-2200, ext. 5327
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
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