Best’s News & Research Service - July 12, 2018 09:25 AM (EDT)
A.M. Best Assigns Issue Credit Rating to National Life Insurance Company’s Newly Issued Surplus Notes
- July 12, 2018 09:25 AM (EDT)
Oldwick //BestWire// - A.M. Best has assigned a Long-Term Issue Credit Rating of “a-” to the $350 million 5.25% surplus notes due 2068 issued by National Life Insurance Company (National Life) (Montpelier, VT). The outlook assigned to this Credit Rating (rating) is stable. The existing Financial Strength Rating and Long-Term Issuer Credit Ratings of National Life and its affiliates are unchanged.
Concurrent with the new surplus note issuance, National Life is offering to exchange any and all of its existing 10.5% surplus notes due 2039 with additional surplus notes having the same terms as the newly issued notes. Following the debt issuance, A.M. Best expects National Life’s balance sheet strength to remain very strong and that financial leverage and interest coverage metrics will remain within guidelines for the assigned ratings. National Life intends to use the proceeds of the issuance for general corporate purposes.
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