A.M. Best Assigns Issue Credit Rating to Manulife Financial Corporation’s Preferred Securities Offering

OLDWICK, N.J.--()--A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb” to the recently issued CAD 250 million 4.7% Non-cumulative Rate Reset Class 1 Shares Series 25 preferred securities of Manulife Financial Corporation (MFC) (Toronto, Canada). The outlook assigned to the Credit Rating (rating) is stable.

The proceeds from the offering will be utilized for general corporate purposes, including funding the recently announced redemption of the MLI 2.819% Debentures. Holders of the Series 25 Preferred Shares will be entitled to receive a non-cumulative quarterly fixed dividend, if declared, yield of 4.70% annually for the period ending June 19, 2023. Thereafter, the dividend rate will be reset every five years at a rate equal to the Canadian government’s 5-year bond yield plus 2.55%. Despite the new issuance, MFC’s financial leverage remains within the range that supports the company’s current Long-Term IRs.

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Anthony McSwieney, +1 908-439-2200, ext. 5715
Senior Financial Analyst
anthony.mcswieney@ambest.com
or
Rosemarie Mirabella, +1 908-439-2200, ext. 5892
Director
rosemarie.mirabella@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Anthony McSwieney, +1 908-439-2200, ext. 5715
Senior Financial Analyst
anthony.mcswieney@ambest.com
or
Rosemarie Mirabella, +1 908-439-2200, ext. 5892
Director
rosemarie.mirabella@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com