CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 21, 2017 03:50 PM (EDT)
A.M. Best has assigned a Long-Term Issue Credit Rating of “aa-” to the $475 million 4.9% surplus notes issued March 20, 2017, with a maturity of April 1, 2077, issued by Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA). The outlook assigned to this Credit Rating (rating) is stable.
The proceeds of the sale of the newly issued surplus notes will be used to repurchase existing outstanding surplus notes through a tender offering. As the proceeds will be used to refinance its existing debt structure, A.M. Best does not anticipate any material change to MassMutual’s leverage ratio or interest coverage ratios. MassMutual’s existing leverage ratios are strong and supportive of its rating and the issuance highlights the organizations financial flexibility and its access to capital markets; however, its interest coverage ratios are lower than its peers and will continue to be monitored.
MassMutual’s ratings continue to recognize its favorable business mix, diversified operating profile and strong position in the domestic life insurance market. MassMutual is one of the leading writers of whole life insurance in the United States and offers a broad portfolio of insurance products and asset management services to individuals across diverse demographics and the corporate marketplace.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.