CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - JULY 31, 2014 09:16 AM (EDT)
A.M. Best has assigned a debt rating of "bbb+" to the $250 million, 4.25% senior unsecured notes due 2024, issued by Symetra Financial Corporation (Symetra) (headquartered in Bellevue, WA) [NYSE: SYA]. Concurrently, A.M. Best has assigned indicative ratings of "bbb+" to senior unsecured debt, "bbb" to subordinated debt, "bbb-" to junior subordinated debt and "bbb-" to preferred shares of the recently filed shelf registration of Symetra. The outlook assigned to all ratings is stable. The existing ratings of Symetra and its subsidiaries are unchanged.
Symetra Financial intends to use the net proceeds from the sale of the debt securities for general corporate purposes, which may include but are not limited to working capital, capital expenditures, repayment of outstanding indebtedness, stock repurchases and dividends.
A.M. Best anticipates that Symetra's adjusted financial leverage ratio, which includes equity credit treatment for a portion of its existing junior subordinated securities, will increase to approximately 20% as a result of the current notes offering. Despite the increase in leverage, A.M. Best notes that Symetra's financial leverage and interest coverage ratios remain well within A.M. Best's guidelines for its current ratings.
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.