Moody’s rates Americo senior notes Baa3

Moody's Investors Service said it assigned a Baa3 debt rating to the $300 million fixed-rate senior notes issued by Americo Life, Inc.

The company intends to use the net proceeds from the debt offering for general corporate purposes.

In the same action, Moody's assigned an A3 insurance financial strength rating to Americo's primary insurance operating company, Americo Financial Life and Annuity Insurance Co. (Americo Financial). The outlook on all the ratings is stable.

The assigned ratings and outlook reflect Americo's solid reputation in its key target markets and strong distribution relationships which have led to strong growth in life insurance sales over the past several years, Moody’s said. Americo's ratings are also supported by solid profitability and capital.

These strengths are mitigated by the company's relatively modest size in the overall life insurance market. Additionally, the company has some concentration in its top IMO distribution partners, Moody’s said.

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