OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating of “aa” to the $2.0 billion surplus notes, with a maturity date of May 15, 2047, issued by Teachers Insurance and Annuity Association of America (TIAA) (domiciled in New York, NY). The outlook assigned to this Credit Rating is stable. The existing ratings of TIAA and its subsidiary, TIAA-CREF Life Insurance Company (New York, NY), are unchanged.
The sale proceeds from the newly issued surplus notes will be used for general corporate purposes, which may include the purchase of 2039 Notes and to pay related accrued and unpaid interest, premiums, fees and expenses attributable to the purchase of EverBank Financial Corp.
A.M. Best does not expect any material changes to TIAA’s leverage ratio or interest coverage ratios. The organization’s existing leverage ratios are strong and supportive of its ratings. Additionally, the issuance highlights TIAA’s ability to access the capital markets and its financial flexibility. However, A.M. Best notes that the organization’s interest coverage ratios are lower than its peers and will continue to be monitored.
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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