OLDWICK, N.J.--(BUSINESS WIRE)--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.
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