AM Best Assigns Issue Credit Ratings to Brighthouse Financial, Inc.’s Forthcoming Senior Unsecured Notes and Preferred Stock

Rhea-AI Summary

AM Best has assigned a Long-Term Issue Credit Rating of “bbb+” (Good) to Brighthouse Financial's upcoming $400 million senior unsecured notes and “bbb-” (Good) to its $350 million preferred stock. The outlook is stable. Additionally, Brighthouse announced a cash tender offer to purchase up to $750 million of its existing senior unsecured notes. The company estimates its risk-based capital ratio between 520% and 540% as of Q3 2021, with a neutral impact on financial leverage and coverage metrics.

Positive

• Assigned Long-Term IR ratings of 'bbb+' and 'bbb-' indicate stability.
• Cash tender offer potentially strengthens capital structure.

Negative

• None.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” (Good) to the forthcoming $400 million, 3.85% senior unsecured notes, due Dec. 22, 2051, and a Long-Term IR of “bbb-” (Good) to the $350 million, 4.625% non-cumulative preferred stock, to be issued by Brighthouse Financial, Inc. (Brighthouse) (headquartered in Charlotte, NC) [NASDAQ: BHF]. The outlook assigned to these Credit Ratings (rating) is stable.

In addition, on Nov. 9, 2021, Brighthouse Financial announced the commencement of a cash tender offer for an aggregate purchase price of up to $500 million (subsequently increased to up to the $750 million aggregate purchase price) of its outstanding 3.7% senior unsecured notes due 2027 and its 4.7% senior unsecured notes due 2047. Brighthouse intends to use the net proceeds of the issuances of the 3.85% senior unsecured notes and the 4.625% non-cumulative preferred stock to fund the cash tender offer.

The company estimates its risk-based capital ratio range between 520% and 540% as of third-quarter 2021. The overall impact to financial leverage and coverage metrics is expected to be approximately neutral.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211115006326/en/

Shauna Nelson

Senior Financial Analyst

+1 908 439 2200, ext. 5365

shauna.nelson@ambest.com

Bruno Caron

Associate Director

+1 908 439 2200, ext. 5144

bruno.caron@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best

FAQ

What is the recent credit rating assigned to Brighthouse Financial (BHF)?

AM Best assigned a Long-Term Issue Credit Rating of 'bbb+' to Brighthouse Financial's upcoming $400 million senior unsecured notes and 'bbb-' to $350 million preferred stock.

What is the purpose of Brighthouse Financial's cash tender offer?

The cash tender offer aims to purchase up to $750 million of its existing senior unsecured notes.

What is Brighthouse Financial's estimated risk-based capital ratio?

Brighthouse Financial estimates its risk-based capital ratio to be between 520% and 540% as of the third quarter of 2021.

What are the maturity dates for the new senior unsecured notes issued by BHF?

The new senior unsecured notes are due on December 22, 2051.