A.M. Best Assigns Debt Rating to MetLife, Inc.'s Remarketed Senior Unsecured Debentures


A.M. Best Assigns Debt Rating to MetLife, Inc.'s Remarketed Senior Unsecured Debentures

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a debt rating of "a-" to the remarketed approximately $1 billion 4.368% Series D senior unsecured debentures, due September 15, 2023 of MetLife, Inc. (MetLife) (New York, NY) [NYSE: MET]. The outlook assigned is stable.

All but $114,000 of such debentures were remarketed in a transaction that is expected to close on September 10, 2013. The debentures, which were originally issued in November 2010, were due June 15, 2024, but will be adjusted effective September 11, 2013, to have a stated maturity of September 15, 2023. These debentures formed part of MetLife's 40,000,000 common equity units with an aggregate stated amount at issuance of $3.0 billion. In September 2012, $1 billion Series C senior unsecured debentures constituting part of the equity units were remarketed in two tranches, with the remaining $1.0 billion Series E senior unsecured debentures expected to be remarketed in September 2014. The common equity units were issued in connection with MetLife's acquisition of American Life Insurance Company and Delaware American Life Insurance Company.

Debentures of $114,000 were not included in the remarketing as holders of these common equity units elected for a cash settlement of stock purchase contracts contained in the common equity units. Proceeds received by holders of common equity units in the remarketing, together with the cash settlement payments, will be used to satisfy $1 billion of holder obligations under the stock purchase contracts expected to settle on September 11, 2013. A.M. Best notes that MetLife's overall financial leverage is expected to remain below 30%, while interest coverage is currently lean for the 12 month period ending June 30, 2013.

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. For more information, visitwww.ambest.com.

Copyright © 2013 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Company, Inc.
Edward Kohlberg, 908-439-2200, ext. 5664
Senior Financial Analyst
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
William Pargeans, 908-439-2200, ext. 5359
Assistant Vice President
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations

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