Moody's: Nationwide notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to the $600 million of 10-year senior debt issued by Nationwide Financial Services, Inc.

The outlook is stable.

The new debt will be used to replace $300 million of senior debt due November 2011, with the remaining proceeds used for general corporate purposes.

The rating was based on the established position of the company's key U.S. life insurance subsidiaries in the annuity and pension markets as well as on their diversified distribution channels and strong brand recognition, generally good asset quality and strong capitalization, Moody's said.

The ratings consider the company's significant exposure to highly competitive, lower-margin asset accumulation products and its growing exposure to variable annuities with significant benefit guarantees, the agency added.

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