KBRA Assigns Preliminary Rating to Kuvare’s Fixed-Rate Reset Cumulative Preferred Shares

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns a preliminary rating of BBB- with a Stable Outlook to Kuvare US Holdings, Inc.’s Fixed-Rate Reset Cumulative Preferred Shares, Series A.

Kuvare is a growing, technology-enabled financial services platform focused on providing financial solutions to the underserved middle market. Through its retail business Kuvare offers households in this segment a range of accumulation, protection and health products sold through distribution partners in multiple channels and enhanced through its digital strategy and operating model. Kuvare also offers reinsurance protection solutions to the institutional markets.

On January 29, 2020, KBRA assigned issuer ratings of BBB to Kuvare US Holdings, Inc. (KUS) and Kuvare UK Holdings Limited (KUK).

The preliminary BBB- rating for the Series A Preferred Shares reflects Kuvare’s strong unrestricted cash coverage, reasonable financial leverage, the issuer rating of KUS, and the guarantee provided by KUK. Further, it is KBRA’s expectation that Kuvare will not issue debt obligations that would be both (i) junior in right of payment to Kuvare Holdings’ obligations under its existing senior credit facilities and other debt that is pari passu with such obligations; and (ii) senior in right of payment to the currently planned Series A Preferred Shares offering.

KUS plans a rule 144A offering of approximately $150 to $200 million of Series A Preferred Shares. The securities are expected to pay quarterly or semi-annual dividends with a 30-year mandatory redemption feature. The securities will benefit from liquidity at KUS generated from dividends paid out of its US insurance subsidiaries as well as a guarantee by KUK which benefits from additional dividend capacity from the unrestricted capacity at Kuvare Life Re.

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.