OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned an indicative Long-Term Issue Credit Rating (Long-Term IR) of “aa-” (Superior) to the surplus notes recently announced by Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA). The outlook assigned to this Credit Rating (rating) is stable. All other Long-Term IRs of MassMutual and its subsidiaries are unchanged.
MassMutual will offer up to $750 million in surplus notes with maturities due in 40 years. This issuance will allow the group to lock in more favorable, long-term financing rates, which is expected to enhance surplus note capital credit and regulatory capital. The issuance is not expected to have a material impact on expenses and earnings.
MassMutual’s financial leverage and interest coverage ratios are within AM Best’s guidelines for its ratings. The proceeds of the surplus notes will be used for general corporate purposes.
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