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FOR IMMEDIATE RELEASE
OLDWICK - MAY 26, 2017 01:48 PM (EDT)
A.M. Best has assigned a Long-Term Issue Credit Rating of “a” to the USD 700 million 4.15% senior unsecured notes due 2047 issued out of Great-West Lifeco Finance (Delaware) LP, a subsidiary of Great-West Lifeco Inc. (Great-West Lifeco) (Winnipeg, Manitoba). 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 notes will be utilized to fund all or a portion of the company’s previously announced early redemption of its 5.691% $1 billion subordinated debentures due 2067. A.M. Best notes that Great-West Lifeco’s adjusted financial leverage is expected to remain below 25%, which is within A.M. Best’s guidelines to support the assigned rating. Additionally, Great-West Lifeco’s interest and fixed charge coverage ratios also are 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 has generated positive results from its diversified insurance, reinsurance and financial services operations. In first-quarter 2017, the company continued to be profitable, incurred growth in assets under administration and reported solid premium trends reflecting higher premiums and deposits across all segments.
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