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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 14, 2019 11:28 AM (EDT)
AM Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the CAD 750 million 2.38% fixed-to-floating rate Series 2019-1 subordinated debentures due Aug. 13, 2029 issued by Sun Life Financial Inc. (SLF) (Ontario, Canada) [NYSE: SLF]. The outlook assigned to this Credit Rating (rating) is stable.
The debentures are being issued as sustainability bonds and an amount equivalent to the net proceeds will be used to finance or refinance new and/or existing eligible assets, as defined in SLF’s Sustainability Bond Framework, dated March 2019. AM Best notes that SLF’s financial leverage remains at approximately 14%. AM Best views SLF’s debt-servicing capabilities favorably, with sufficient liquidity to service its debt, a well-laddered debt maturity structure, strong interest coverage ratios and financial leverage ratios that remain within AM Best’s guidelines for the company’s current ratings.
SLF’s ratings also recognize its demonstrated track record of strong and relatively stable IFRS-adjusted operating earnings, despite highly competitive market conditions in the United States and Canada and the continuation of the historically low interest rate environment. The company also benefits from its leading market positions and expansive global footprint as demonstrated by its strong top line growth.
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