AM Best Assigns Issue Credit Rating to MetLife, Inc.’s New Senior Unsecured Notes
AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to MetLife, Inc.'s newly issued $500 million, 5.300% senior unsecured notes due Dec. 15, 2034. The outlook for this rating is stable, and all other ratings for MetLife and its subsidiaries remain unchanged.
The raised funds are intended for general corporate purposes, potentially including the redemption, repurchase, or repayment at maturity of MetLife’s senior notes due in 2025. MetLife’s proforma adjusted financial leverage and historical interest coverage align with its current ratings, showcasing strong holding company liquidity.
This rating was published on AM Best’s website. For detailed rating information and disclosures, refer to AM Best’s Recent Rating Activity web page.
- Assigned an 'a-' (Excellent) Long-Term Issue Credit Rating to MetLife's new $500 million senior unsecured notes.
- Stable outlook for the newly assigned rating.
- Proceeds may be used for beneficial activities including redemption or repayment of senior notes due in 2025.
- MetLife’s proforma adjusted financial leverage and historical interest coverage are consistent with current ratings.
- Strong holding company liquidity.
- None.
Insights
MetLife’s issuance of
One key element here is the use of proceeds for general corporate purposes, including the redemption of notes due in 2025. This indicates a proactive approach in managing debt and optimizing the balance sheet. Such moves often signal confidence in long-term financial health.
MetLife’s proforma adjusted financial leverage and historical interest coverage remain consistent with current ratings. This stability suggests that the company is well-positioned to manage its obligations, maintaining strong liquidity at the holding company level. Investors should note that credit ratings play a important role in assessing the risk associated with these bonds.
From a market perspective, the issuance of these notes can provide a degree of predictability and stability to MetLife’s financial profile. The stable outlook assigned by AM Best supports investor confidence, suggesting minimal risk of default or financial distress. Such ratings help investors understand the risk-reward balance.
MetLife’s strategic move to potentially refinance its 2025 notes with this new issuance is a prudent tactic in capital markets. It highlights the management's foresight in taking advantage of favorable market conditions to lock in fixed rates, thereby managing interest rate risk over a longer term.
For retail investors, it is essential to grasp that issuing new debt to replace older debt due soon can help in lengthening the maturity profile of obligations without significantly impacting leverage metrics. This can be a sign of a well-managed financial strategy, aiming to ensure long-term financial stability.
The proceeds from this debt issuance are expected to be used for general corporate purposes, which may include the redemption, repurchase or repayment at maturity in whole or in part of MetLife’s senior notes due 2025. MetLife’s proforma adjusted financial leverage and the historical interest coverage are in line with its current ratings, and its holding company liquidity is strong.
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 Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Louis Silvers
Senior Financial Analyst
+1 908 882 2316
louis.silvers@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Jacqalene Lentz
Director
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jacqalene.lentz@ambest.com
Al Slavin
Senior Public Relations Specialist
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al.slavin@ambest.com
Source: AM Best
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