Best’s News & Research Service - September 06, 2018 09:35 AM (EDT)
A.M. Best Assigns Issue Credit Rating to Voya Financial Inc.’s New Preferred Stock
- September 06, 2018 09:35 AM (EDT)
Oldwick //BestWire// - A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb-” to the $325 million 6.125% non-cumulative preferred stock to be issued by Voya Financial Inc. (Voya) (headquartered in New York, NY) [NYSE: VOYA] on Sept. 12, 2018. The outlook assigned to this Credit Rating (rating) is stable. The existing ratings of Voya and its subsidiaries remain unchanged.
The proceeds from the offering will be utilized for general corporate purposes, including the funding of a concurrent tender offer and consent solicitation for $325 million of various outstanding senior notes. The company may call the notes after five years from issuance. A.M. Best anticipates a modest increase in leverage in the short term; however, financial leverage and interest coverage ratios remain well within A. M. Best guidelines for the current ratings. A.M. Best notes that with the successful closings of the sales of Voya’s closed-block variable annuity business and fixed annuity business in June, the company’s ratings are reflective of its leading retirement business, asset management and employee benefits business.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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