OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned Long-Term Issue Credit Rating of “aa-” to the $838.5 million surplus notes issuance, announced by Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA). The surplus notes will be due Oct. 15, 2070. The outlook assigned to this Credit Rating (rating) is stable. All other existing ratings of MassMutual and its subsidiaries are unchanged.
MassMutual engaged in a program in which $615 million of its existing surplus notes outstanding were exchanged, and $838.5 million in new surplus notes were issued. The interest rate for these notes is 3.729%, which will result in lower weighted interest charges on its debt. AM Best does not see any material change in financial leverage and interest coverage ratios, which are within the guidelines for the current ratings.
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