Best’s News & Research Service - January 23, 2018 11:02 AM (EST)
A.M. Best Assigns Issue Credit Rating to Voya Financial Inc.’s New Junior Subordinated Notes
- January 23, 2018 11:02 AM (EST)
Oldwick //BestWire// - A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb-” to the $350 million 4.70% fixed-to-floating rate junior subordinated notes due 2048 that were recently issued by Voya Financial Inc. (Voya) (headquartered in New York, NY) [NYSE: VOYA]. The Credit Rating (rating) has been placed under review with developing implications. The existing ratings of Voya and its subsidiaries, which were placed under review with developing implications on Dec. 21, 2017, remain unchanged.
The majority of the new notes are expected to be used to repay at maturity the company’s 2.9% senior notes due in February 2018. The senior note had a balance of $336.6 million as of Sept. 30, 2017. A.M. Best anticipates that Voya’s adjusted financial leverage ratio will increase to approximately 21% until the net proceeds are used to repay outstanding notes and debentures. Despite the modest increase in leverage, A.M. Best notes that the company’s financial leverage and interest coverage ratios remain well within A.M. Best’s guidelines for the current ratings.
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