A.M. Best Assigns Issue Credit Rating to Unum Group’s Junior Subordinated Notes

OLDWICK, N.J.--()--A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bb+” to the recently issued $300 million 6.25% Junior Subordinated Notes due 2058, of Unum Group (Unum) (headquartered in Chattanooga, TN). The outlook assigned to the Credit Rating (rating) is stable.

The proceeds from the offering will be utilized to repay, redeem or repurchase the $200 million aggregate principle amount of its 7% Senior Notes due 2018 and for general corporate purposes. The notes may be redeemed in whole or in part from time to time on or after June 15, 2023. Despite the new issuance, Unum’s financial leverage remains within the range that supports the company’s current Long-Term IRs. In addition, the company maintains strong interest coverage ratios along with additional cash and short-term investments at the holding company level that is equivalent to five times interest expense.

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
Michael Adams, +1 908 439 2200, ext. 5133
Senior Financial Analyst
michael.adams@ambest.com
or
Joseph Zazzera, MBA, +1 908 439 2200, ext. 5797
Director
jospeh.zazzera@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
Michael Adams, +1 908 439 2200, ext. 5133
Senior Financial Analyst
michael.adams@ambest.com
or
Joseph Zazzera, MBA, +1 908 439 2200, ext. 5797
Director
jospeh.zazzera@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