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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 02, 2016 08:58 AM (EST)
A.M. Best has assigned a Long-Term Issue Credit Rating of “a” to the recently announced €500 million 1.75% 10-year senior unsecured euro bonds of Great-West Lifeco Inc. (Great-West Lifeco) (Winnipeg, Manitoba) expected to close on Dec. 7, 2016. The outlook assigned to the Credit Rating (rating) is stable, and the existing ratings of Great-West Lifeco and its subsidiaries are unaffected.
The proceeds from the bond offering will be utilized for general corporate purposes and to augment the corporation’s liquidity position. A.M. Best expects Great-West Lifeco’s adjusted financial leverage to remain below 30%, which is within A.M. Best’s guidelines to support the assigned rating. Additionally, Great-West Lifeco’s interest coverage ratio also is expected to remain within A.M. Best’s guidelines for its current rating level.
The rating reflects Great-West Lifeco’s very strong market position in its core business lines, its highly diversified earnings profile and strong financial flexibility. Great-West Lifeco consistently has generated positive results from its diversified insurance, reinsurance and financial services operations. The company’s positive earnings trend has continued through third-quarter 2016, while delivering growth in assets under administration and premium, driven by strong individual insurance and single premium group annuity sales in Canada.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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