A.M. Best Assigns Rating to Sun Life Financial Inc.’s New Subordinated Debentures

OLDWICK, N.J.--()--A.M. Best has assigned a debt rating of “bbb+” to CAD 250 million of Series 2014-1 subordinated unsecured 2.77% fixed/floating debentures due 2024 to be issued by Sun Life Financial Inc. (SLF) (Ontario, Canada) [NYSE: SLF]. The outlook assigned is stable.

A.M. Best expects SLF to utilize the proceeds from the debentures to fully redeem its Series 6R preferred shares that are callable on June 30, 2014. Since the principal amounts are similar, there is no impact on SLF’s financial leverage ratio. Going forward, SLF’s interest coverage will benefit slightly from the debentures’ lower coupon rate.

The ratings of SLF and its subsidiaries were affirmed with a stable outlook on May 1, 2014. (For further details, see press release.)

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, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Richard McMillan
Managing Senior Financial Analyst
(908) 439-2200, ext. 5615
richard.mcmillan@ambest.com
or
Andrew Edelsberg
Vice President
(908) 439-2200, ext. 5182
andrew.edelsberg@ambest.com
or
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

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Contacts

A.M. Best
Richard McMillan
Managing Senior Financial Analyst
(908) 439-2200, ext. 5615
richard.mcmillan@ambest.com
or
Andrew Edelsberg
Vice President
(908) 439-2200, ext. 5182
andrew.edelsberg@ambest.com
or
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com