AM Best Assigns Issue Credit Ratings to USAA Capital Corporation’s Senior Unsecured Medium Term Notes

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned Long-Term Issue Credit Ratings (Long-Term IR) of “aaa” to the $400 million 1.5% senior unsecured sustainability bonds due May 1, 2023, and the $400 million 2.125% senior unsecured sustainability bonds due May 1, 2030, issued by USAA Capital Corporation (San Antonio, TX). The outlook assigned to these Credit Ratings (ratings) is stable.

USAA Capital Corporation intends to use the net proceeds from the sale of the senior unsecured notes to finance or refinance projects of United Services Automobile Association (USAA) or any of its subsidiaries that have environmental and/or social benefits and meet certain eligibility criteria. The $400 million 3.0% senior unsecured notes due July 1, 2020, and $400 million 2.45% senior unsecured notes due Aug. 1, 2020, are expected to mature as scheduled. Following these debt maturities, AM Best notes that USAA Capital Corporation’s financial leverage will remain largely unchanged at approximately 7%, as the recent debt issuance will be offset by the upcoming debt maturities. USAA Capital Corporation’s financial leverage and interest coverage ratios remain within AM Best’s guidelines for these ratings and are expected to remain so in the near term.

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