A.M. Best Co. has assigned a debt rating of “a-” to the recently
issued $1 billion, 4.875% senior unsecured notes due November 13, 2043
of MetLife, Inc. (MetLife) (New York, NY)(NYSE:MET). The outlook
assigned is stable.
The proceeds from the debt offering will be utilized for general
corporate purposes, which may include the repayment in whole or in part
of $1.350 billion of outstanding senior notes due in 2014 upon their
maturities. A.M. Best notes that MetLife’s overall financial leverage is
expected to remain below 30%, while interest coverage is expected to
remain above five times. Both measures are within A.M. Best’s guidelines
for MetLife’s current rating level.
The rating recognizes MetLife’s diverse business mix, prominent market
position and brand recognition in several business lines, favorable
operating results and significant operating scale. MetLife continues to
report solid operating earnings while maintaining adequate risk-adjusted
capital ratios in 2012 and into 2013. Despite net derivative losses for
the first three quarters of 2013, mainly driven by increases in interest
rates and changes in foreign currencies, earnings remain strong due to
recent de-risking strategies and increased earnings share from
international markets. A.M. Best will continue to monitor the impact of
the current macroeconomic environment including interest rate movement
on MetLife’s insurance operation’s earnings and risk-adjusted capital.
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 www.ambest.com/ratings/methodology.
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.
Copyright Business Wire 2013