Downgrades across the board
Series J offering is a "BB+", which isn't good
https://www.insurancejournal.com/news/national/2023/05/23/721909.htm
9 replies (most recent on top)
@clq+1mOiDdT4…. Even Ray Charles could have see the writing on the wall. You don’t need to be a stock expert. Just need to get your head out of TW a-s & open your eyes.
The Tipping Point has been eclipsed. The snowball of decline is about to get larger and faster rolling down the hill.
The BOD and Wilson simply don't care don't care. They are well aware of what is coming and that the end of Allstate is near. They are just eeking every dollar out of it that they can for themselves and then they ride off into the sunset. Allstate will soon be the way of Sears and K-Mart. Two past affiliated companies....
I like how everyone is a stock expert. What a joke
Well, they spent down a chunk of their capital reserves with stock buybacks (i.e. self-dealing), so I guess they have to use the (in fact "BB+ = Junk) Series J in order to raise more capital for more buybacks.
I'm sure there's a technical, legalistic reason why it hasn't just become a Ponzi Scheme
This is very telling.
There is now doubt that Allstate has the equity to cover debt.
This is key to the outlook of the financial stability of a corporation.
The “handlers” and bu-t kissers that are active in this site can try to spin positive all that they like but right now Allstate is in sorry state no matter what metric that you look at:
Profitability
Customer service
Financial outlook
Stock price and current trends
Revolving door of top executives
Financial soundness
The BOD is negligent in allowing this to go from bad to worse and there is NO sign of a turn around…
“Fitch Ratings - Chicago - 22 May 2023: Fitch Ratings has downgraded The Allstate Corporation's core property/casualty insurance subsidiaries' Insurer Financial Strength (IFS) ratings to 'A' (Strong) from 'A+'. Fitch has also downgraded Allstate's holding company ratings, including the Issuer Default Rating (IDR), to 'BBB+' from 'A-' and its senior debt to 'BBB' from 'BBB+'. Additionally, Fitch has assigned a 'BB+' rating to Allstate's Series J preferred stock issuance. The Rating Outlook is Stable.
The downgrade reflects declines in statutory capital and elevated financial leverage, compared to the rating sensitivities. Fitch expects environmental challenges in personal auto from persistently high loss severity trends to challenge Allstate's ability to return by YE 2023 to the strong risk-based capitalization levels that the company has historically maintained.”
"BBB" is generally considered the cutoff at/below which is "junk" but sure, Mr. Anonymous internet know-it-all, tell us how that's "a far ways off".
That's a far ways off from junk rating
And so it begins…..