OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned an issue rating of “aa+” to Massachusetts Mutual Life Insurance Company’s (MassMutual) newly issued medium termed note (MTN), which is part of its current MassMutual Global Funding II program. The assigned outlook is stable. The MTN has a principal amount of $650 million with an interest rate of 2.45% annually. The maturity date of the note is November 23, 2020. As part of MassMutual’s business strategy, the company writes funding agreements through its two medium term note programs. MTNs issued under the program rank pari-passu with policyholder obligations.
Proceeds from the note issuance are earmarked for general corporate purposes. A.M. Best views this issuance as operating leverage and notes MassMutual’s pro forma operating leverage is below the 10% range, which is well within the guideline for the rating. A.M. Best further notes MassMutual’s pro forma financial leverage on a statutory basis is expected to remain in the 16% range in the near to medium term. Coverage is viewed as adequate given the improved operating earnings reported in 2014 and through the third quarter of 2015.
MassMutual’s ratings continue to recognize its favorable business mix, diversified operating profile and strong position in the domestic life insurance market. MassMutual is one of the leading writers of whole life insurance in the United States and offers a broad portfolio of insurance products and asset management services to individuals across diverse demographics and the corporate marketplace.
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