S&P assigns A- to Protective Life notes

Standard & Poor's said it assigned its A- rating to Protective Life Corp.'s up to $400 million senior unsecured notes, which are expected to mature Oct. 15, 2019; $300 million senior unsecured notes, expected to mature Oct. 15, 2039; and $100 senior unsecured notes callable in 2014, expected to mature Oct. 15, 2024.

At the same time, S&P affirmed its AA- counterparty credit and financial strength ratings on Protective Life's core operating companies, Protective Life Insurance Co., West Coast Life Insurance Co., and Protective Life and Annuity Insurance Co. The outlook on these companies remains stable.

S&P said it expects that Protective Life will use the proceeds from the notes to purchase up to $800 million of outstanding surplus notes from Golden Gate Captive Insurance Co. due 2037. Golden Gate will then buy $800 million of existing surplus notes at a discount and realize a gain. This amount will be paid via a dividend to Protective Life Insurance Co., subject to regulatory approval.

"We view the transaction as favorable to the company's creditworthiness, as it is expected to reduce borrowing costs for some long-term obligations and provide additional capital and financial flexibility to Golden Gate," said S&P credit analyst Kevin Maher in a news release.

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