Moody’s: Pacific Life surplus notes A3 (hyb)

Moody's Investors Service said it assigned an A3 (hyb) debt rating to the issuance of $500 million or more of 50-year surplus notes by Pacific Life Insurance Co. (A1 insurance financial strength, stable).

Proceeds will be used to repurchase the existing notes, which the company is tendering for concurrently.

Moody's said the A3 (hyb) surplus note rating reflect the standard two-notch difference between an operating company's IFS rating and its surplus note rating, because of the subordination of surplus notes to policyholder and senior creditor claims.

The surplus notes rank pari passu with the company's existing surplus notes.

“Following the surplus note issuance, Moody's expects Pacific Life's leverage metrics to remain unchanged and its coverage metrics to improve marginally. As of year-end 2016, the company reported financial leverage and earnings coverage metrics of 16% and 7.2x, respectively,” the agency said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.