OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “aa-” to the recently issued $700 million 3.375% surplus notes, due 2050, issued by Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA). The outlook assigned to the Credit Rating (rating) is stable. All other Long-Term IRs of MassMutual and its subsidiaries are unchanged.
MassMutual’s financial leverage and interest coverage ratios are within AM Best guidelines for its ratings. The interest rate for the issued surplus notes is 3.375%, and the proceeds will be used for general corporate purposes. AM Best believes the issuance is prudent given challenging macro-economic headwinds from the COVID-19 pandemic, and that the issuance bolsters MassMutual’s liquidity and capital profile. AM Best notes that MassMutual has no immediate long-term debt coming due until November 2023, and that MassMutual has additional financial flexibility from an $800 million contingent capital facility, which remains undrawn.
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