Moody's rates MetLife notes A2

Moody's Investors Service said it assigned an A2 senior debt rating to MetLife, Inc.'s proposed issuance of $1.25 billion of senior notes.

The outlook is stable.

Proceeds will be used for general corporate purposes.

"Although MetLife's financial leverage is now at the high end of its rating range and above our expectations, the capital raise benefits the company by providing stronger holding company liquidity and a source for future capital contributions to the operating companies, especially given the recent past challenges to raising capital for life insurers in general," Ann Perry, Moody's vice president and senior credit officer, said in a statement.

"Over the next 12 months, we expect MetLife to manage its financial leverage back down to 25% or lower, the upper end of our expectations for its current ratings."

MetLife's strong brand recognition and leading market positions in both individual and group life businesses, diversified distribution system with a large career agent sales force, substantial and strong capital base, and the company's very diversified business mix with strong earning capacity support ratings, the agency said.

These strengths are somewhat offset by the challenges that MetLife faces in the current operating environment, specifically pressures on its profitability and financial flexibility emanating from higher levels of investment losses and from the weak economy and capital markets over the medium-term, the agency noted.

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