A.M. Best Assigns Issue Credit Rating to Manulife Financial Corporation’s Subordinated Notes Offering

OLDWICK, N.J.--()--A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the recently issued USD $750 million 4.061% subordinated notes due 2032 of Manulife Financial Corporation (MFC) (Toronto, Canada). The outlook assigned to the Credit Rating is stable.

The proceeds from the offering will be utilized for general corporate purposes, including future refinancing. Holders of the subordinated notes will receive an initial annual yield of 4.061% paid semi-annually ending Feb. 24, 2027 (reset date). After the reset date, the coupon will reset at a rate equal to the then 5-year Mid-Swap Rate plus 1.647%. The notes will mature on Feb. 24, 2032. Despite the new issuance, MFC’s financial leverage remains within the range that supports the company’s current Long-Term Issuer Credit Ratings.

MFC reported net income attributed to shareholders of CAD 2,929 million for 2016, based on International Financial Reporting Standards.

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.

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Contacts

A.M. Best
Anthony McSwieney
Senior Financial Analyst
+1 908 439 2200, ext. 5715
anthony.mcswieney@ambest.com
or
Rosemarie Mirabella
Director
+1 908 439 2200, ext. 5715
rosemarie.mirabella@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

A.M. Best
Anthony McSwieney
Senior Financial Analyst
+1 908 439 2200, ext. 5715
anthony.mcswieney@ambest.com
or
Rosemarie Mirabella
Director
+1 908 439 2200, ext. 5715
rosemarie.mirabella@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com