Fitch Rates New Allstate Senior Note Issue 'A+'; Outlook Stable.

CHICAGO -- Fitch Ratings has assigned a senior debt rating of 'A+' to The Allstate Corporation's (Allstate) $800 million 5.55% senior note issue due May 2035. This rating is consistent with Fitch's current long-term issuer and existing debt ratings on Allstate. The Rating Outlook

Allstate anticipates using the proceeds of the debt issuance for general corporate purposes, including facilitation of the redemption of a $900 million 7 7/8% senior note issue which expired May 1, 2005. Following the issuance, Allstate's pro forma March 31, 2005 financial leverage will be approximately 20.2% of total adjusted capital, excluding AOCI. Allstate's interest coverage ratio was approximately 13 and 18 times (x), respectively in 2004 and first quarter 2005, reflecting its excellent financial results.

Allstate's excellent 2004 results continued in first quarter 2005 reflecting the company's strong market position, good operating performance and conservative capitalization structure. Allstate has a strong asset portfolio and reasonable operating leverage. The company's strong operating track record in property/casualty personal automobile segment continues to be a favorable consideration, and performance in homeowners, excluding catastrophes, has also been good.

Fitch's main concern for Allstate continues to be its property/casualty catastrophe exposure. As the nation's second largest personal lines insurer, Allstate will continually be challenged to manage this exposure, although Allstate favorably managed the effects of 2004's hurricane losses. Fitch also notes challenges in the Life operation due to rising interest rates.

Allstate is one of the largest property/casualty insurance companies in the United States. The company provides a full array of personal lines insurance coverage throughout states and the District of Columbia. The company had property/liability earned premiums of $6.7 billion for the first quarter of 2005, up 4.9% or $.3 billion from first quarter 2004. Allstate Financial, the company's large life insurance and annuity operation, contributed approximately 11% of first quarter 2005 operating earnings. Allstate had total assets of $151.5 billion and total shareholders' equity of $21.3 billion, as of March 31, 2005.

Note: The noted ratings were initiated by Fitch as a service to users of Fitch ratings and are based on public information.

Entity/Issue/Type                             Action  Rating/Outlook

Allstate Corporation

-- $800,000,000 5.55% senior notes due 2035   Assign  'A+'/Stable.