Moody's: Protective debt Baa3

Moody's Investors Service said it assigned a Baa3 hybrid subordinated debt rating to Protective Life Corp.'s $100 million issuance of 30-year fixed rate debentures.

The debentures are a drawdown from a shelf registration filed in June 2011.

Proceeds are expected to be used to redeem capital securities issued by Protective.

The outlook is stable.

"Protective's debt issuance, under which Protective has the right to defer interest payments for up to five consecutive years, is credit neutral as the company's total debt outstanding will remain unchanged following redemption. However, given the new subordinated debt's lower coupon relative to the debt to be redeemed, the company will have a marginally lower interest expense," Moody's vice president Ann Perry said in a news release.

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