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

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “aaa” (Exceptional) to the $500 million, 0.5% senior unsecured medium term notes, due May 1, 2024, issued by USAA Capital Corporation (San Antonio, TX). The outlook assigned to the Credit Rating (rating) is stable. All other ratings of USAA Capital Corporation and its insurance affiliates remain unchanged.

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 or social benefits and meet certain eligibility criteria. AM Best notes that USAA Capital Corporation’s $400 million, 2.625% senior unsecured notes issued in 2019 and $400 million, 2.0% senior unsecured notes issued in 2018 matured on June 1, 2021. The net impact of the debt transactions results in a modest decline in financial leverage and increase in interest coverage metrics, which remain within AM Best’s guidelines for the current ratings.

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