TEXT-S&P rates Allstate junior subordinated debt 'BBB'

Jan 3 - Standard & Poor's Ratings Services said today that it assigned its
'BBB' debt rating to Allstate Corp.'s (NYSE:ALL) junior subordinated
debentures up to $1 billion maturing in 2053. We expect the debentures to
qualify for intermediate content treatment under our criteria for hybrid
securities, based on a review of preliminary documentation.

The company intends to use the net proceeds from this issue for general
corporate reasons including share repurchases. Adjusted debt and financial
leverage as of Sept. 30, 2012, were conservative at 23.2% and 26.6%,
respectively. Fixed-charge coverage is very strong, improving to 10.3x during
the first nine months of 2012 from 2.7x in full-year 2011. On a pro-forma
basis we expect financial leverage to be near 30% and fixed-charge coverage to
be near 9x for 2012 and 2013.

The counterparty credit rating on Allstate Corp. and the insurer financial
strength ratings on its property-liability insurance operating companies are
based on its very strong competitive position and well-recognized franchise in
the U.S. personal-lines sector. Strong but volatile operating results, capital
adequacy that is deficient at the rating level, and an aggressive
capital-management strategy offset the positive factors. Allstate also has
earnings volatility from exposure to catastrophe, and investment-portfolio
losses and competitive pressures in its standard auto book because of
catastrophe-reduction efforts in the homeowners' book.

RELATED CRITERIA AND RESEARCH
Hybrid Capital Handbook: September 2008 Edition, Sept. 15, 2008

RATINGS LIST
Allstate Corp.
Counterparty Credit Rating A-/Negative/A-2

New Rating
Allstate Corp.
Jr. Sub. Notes Due 2053 BBB

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