A.M. Best Comments on Credit Ratings of Genworth Financial, Inc. & Its Subsidiaries Following Announced Delay in Regulatory A...
October 02 2017 - 3:07PM
Business Wire
A.M. Best has commented that the Long-Term Issuer Credit
Ratings (Long-Term ICR) of “bb-” of Genworth Financial, Inc.
(Genworth) [NYSE:GNW] and Genworth Holdings, Inc. (both
domiciled in Delaware), as well as their existing Long-Term Issue
Credit Ratings (Long-Term IR) will remain under review with
negative implications following the announcement that Genworth and
China Oceanwide Holdings Group Co., Ltd. (Oceanwide) have withdrawn
their joint voluntary notice with the Committee on Foreign
Investment in the United States (CFIUS). In addition, the Financial
Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb”
of Genworth Life and Annuity Insurance Company (GLAIC)
(Richmond, VA), and the FSRs of B (Fair) and the Long-Term ICRs of
“bb+” of Genworth Life Insurance Company (Wilmington, DE)
and Genworth Life Insurance Company of New York (New York,
NY) also will remain under review with negative implications.
The announcement also highlights that the two companies intend
to refile the transaction at some point with additional mitigation
approaches, including working with a U.S. third-party provider.
This is the third time the parties have withdrawn their filing
seeking approval of Oceanwide’s $2.7 billion acquisition of
Genworth. Separately, A.M. Best notes that Genworth received
approval from the Virginia State Corporation Commission, Bureau of
Insurance to proceed specifically with the proposed acquisition of
GLAIC this past month. While regulatory approvals remain
outstanding, the two companies remain committed to the
transaction.
A.M. Best notes that with all merger and acquisition
transactions, there is a fair amount of execution risk, including
successfully obtaining all necessary regulatory approvals. However,
the ongoing delays in the CFIUS process places continued
uncertainty on the potential successful timely execution of this
transaction. A.M. Best will continue to monitor the progress of the
transaction through ongoing discussions with management. In
addition, A.M. Best continues to evaluate the ongoing operating
performance of each rating unit under Genworth for any developments
that may impact the ratings, including third-quarter 2017
performance and the completion of all assumption reviews.
In addition, in the event the acquisition by Oceanwide cannot be
completed, Genworth also announced it is looking at options to
address its May 2018 debt maturity of $600 million. These options
include a potential refinancing, current holding company cash, and
potential asset sales. A.M. Best also will monitor Genworth’s
progress in securing a solution to address the May 2018 debt
maturity, and the impact it may have to the overall
creditworthiness of the company.
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. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171002006400/en/
A.M. BestBruno Caron, +1 908 439 2200, ext.
5144Financial
Analystbruno.caron@ambest.comorKen Johnson, CFA,
CAIA, FRM, +1 908 439 2200, ext. 5056Senior
Directorken.johnson@ambest.comorChristopher Sharkey,
+1 908 439 2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1 908 439 2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
Genworth Financial (NYSE:GNW)
Historical Stock Chart
From Aug 2024 to Sep 2024
Genworth Financial (NYSE:GNW)
Historical Stock Chart
From Sep 2023 to Sep 2024