AM Best Assigns Issue Credit Rating to MetLife, Inc.’s New Preferred Shares
January 16 2020 - 10:26AM
Business Wire
AM Best has assigned a Long-Term Issue Credit Rating of
“bbb” to the $1 billion issuance of 4.75% non-cumulative preferred
stock, Series F recently issued by MetLife, Inc. (MetLife) (headquartered
in New York, NY) [NYSE: MET]. The outlook assigned to the Credit
Rating (rating) is stable.
Proceeds from the sale of the preferred shares issued as
depositary shares will be utilized for general corporate purposes,
which may include the repurchase of outstanding preferred stock.
The Series F fixed rate preferred shares are perpetual, but the
dividends are not cumulative or mandatory. The preferred shares are
redeemable, in whole or in part, on or after March 15, 2025. The
preferred shares also are redeemable, in whole but not in part, at
any time prior to March 15, 2025, within 90 days after the
occurrence of a rating agency event or regulatory capital
event.
AM Best notes that MetLife’s pro forma financial leverage is in
the 25% range and is expected to remain level in the medium term.
Additionally, MetLife’s financial flexibility remains strong with
interest coverage in line with AM Best’s expectations.
MetLife’s ratings recognize its diverse business mix, generally
favorable operating results, strong franchise, considerable scale
and prominent market position. MetLife continues to generate
consistent revenue and cash flows, and has reported growth in
operating earnings across the majority of its core segments.
Overall operating results were strong during 2019 reflecting
lower volatility of returns, expense efficiencies and double-digit
GAAP returns on equity. The company’s ratings were affirmed in
November 2019.
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 media use of Best’s
Credit Ratings and AM Best press releases, please view Guide for
Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global credit rating agency, news publisher and
data provider specializing in the insurance industry. The company
does business in more than 100 countries. Headquartered in Oldwick,
NJ, AM Best has offices in cities around the world, including
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For
more information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Kate Steffanelli Senior Financial Analyst +1
908 439 2200, ext. 5063 kate.steffanelli@ambest.com
Rosemarie Mirabella Director +1 908 439 2200,
ext. 5892 rosemarie.mirabella@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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