Best’s News & Research Service - August 18, 2017 10:16 AM (EDT)
A.M. Best Assigns Issue Credit Rating to Manulife Financial Corporation’s Subordinated Notes Offering
- August 18, 2017 10:16 AM (EDT)
Oldwick //BestWire// - A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the recently announced CAD 750 million 3.049% subordinated notes due 2029 of Manulife Financial Corporation (MFC) (Toronto, Canada). The outlook assigned to the Credit Rating (rating) is stable.
MFC intends to use the net proceeds from the offering for general corporate purposes, including funding the announced redemption of MFC’s 7.768% Medium Term Notes due April 8, 2019 on October 6, 2017 and other future financing requirements. Holders of the subordinated notes will receive an initial annual yield of 3.049% paid semi-annually ending Aug. 20, 2024 (reset date). After the reset date, the interest will reset every three months at a rate equal to the 3-month Canadian Dealer Offered Rate (CDOR), plus 1.05%. The notes will mature on Aug. 20, 2029. MFC reported net income attributed to shareholders of CAD 1,255 million for the second quarter 2017, based on International Financial Reporting Standards. Financial leverage and interest coverage remain within the range that supports the company’s current Long-Term Issuer Credit Ratings.
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