AM Best has assigned an indicative Long-Term Issue Credit Rating (Long-Term IR) of “aa-” (Superior) to the surplus notes recently announced by Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA). The outlook assigned to this Credit Rating (rating) is stable. All other Long-Term IRs of MassMutual and its subsidiaries are unchanged.
MassMutual will offer up to $750 million in surplus notes with maturities due in 40 years. This issuance will allow the group to lock in more favorable, long-term financing rates, which is expected to enhance surplus note capital credit and regulatory capital. The issuance is not expected to have a material impact on expenses and earnings.
MassMutual’s financial leverage and interest coverage ratios are within AM Best’s guidelines for its ratings. The proceeds of the surplus notes will be used for general corporate purposes.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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