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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 11, 2014 10:15 AM (EDT)
A.M. Best has assigned a debt rating of "a-" to the recently issued $1 billion, 3.60% senior unsecured notes due April 10, 2024 of MetLife, Inc. (MetLife) (New York, NY) [NYSE: MET]. The outlook assigned is stable.
The proceeds from the debt offering will be utilized for general corporate purposes, which may include the repayment of $350 million of outstanding senior notes due in 2014 upon their maturities and the redemption of $200 million of senior notes due 2033 scheduled to occur on May 5, 2014. A.M. Best notes that MetLife's overall financial leverage is expected to remain below 30%, while interest coverage is expected to remain above five times. Both measures are within A.M. Best's guidelines for MetLife's current rating level.
The rating recognizes MetLife's global footprint, diverse business mix, prominent market position and brand recognition in several business lines, favorable operating results and significant operating scale. MetLife continues to report solid operating earnings while maintaining adequate risk-adjusted capital ratios. Despite net derivative losses in 2013, mainly driven by increases in interest rates and changes in foreign currencies, earnings remain strong due to recent de-risking strategies and increased earnings share from international markets. A.M. Best will continue to monitor the impact of the current macroeconomic environment including interest rate movements on MetLife's insurance operations' earnings and risk-adjusted capital.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.