OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating of “a” to the USD 700 million 4.15% senior unsecured notes due 2047 issued out of Great-West Lifeco Finance (Delaware) LP, a subsidiary of Great-West Lifeco Inc. (Great-West Lifeco) (Winnipeg, Manitoba). The outlook assigned to the Credit Rating (rating) is stable, and the existing ratings of Great-West Lifeco and its subsidiaries are unaffected.
The proceeds from the notes will be utilized to fund all or a portion of the company’s previously announced early redemption of its 5.691% $1 billion subordinated debentures due 2067. A.M. Best notes that Great-West Lifeco’s adjusted financial leverage is expected to remain below 25%, which is within A.M. Best's guidelines to support the assigned rating. Additionally, Great-West Lifeco’s interest and fixed charge coverage ratios also are expected to remain within A.M. Best's guidelines for its current rating level.
The rating reflects Great-West Lifeco’s very strong market position in its core business lines, its highly diversified earnings profile and strong financial flexibility. Great-West Lifeco has generated positive results from its diversified insurance, reinsurance and financial services operations. In first-quarter 2017, the company continued to be profitable, incurred growth in assets under administration and reported solid premium trends reflecting higher premiums and deposits across all segments.
This press release relates to Credit Ratings that have been published on A.M. Best’s website.
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