| Copyright: | Business Wire | | Source: | Business Wire | | Wordcount: | |
OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a debt rating of "a-" to $400 million 6.45% senior unsecured notes due 2019 of Reinsurance Group of America Incorporated (RGA) (St. Louis, MO) [NYSE: RGA]. The outlook assigned to the rating is stable. All existing ratings of RGA are unchanged.
A.M. Best expects the proceeds to be used for general corporate purposes including bolstering the liquidity position at the holding company. RGA's adjusted debt-to-total capital ratio was roughly 22% at September 30, 2009 (excluding other comprehensive income), garnering some equity credit for hybrid securities. The company's financial leverage ratios remain within A.M. Best's guidelines for its debt ratings; however, while showing modest improvement in 2009, coverage ratios have trended below A.M. Best's expectations for a holding company with an issuer credit rating of "a-".
A.M. Best views RGA's cash coverage capabilities favorably, with cash flows supported by profitable operations and a strong franchise in the North American life reinsurance market. Moreover, RGA maintains a favorable liquidity position, reflecting the high quality of its asset portfolio, strong asset liability management capabilities and sufficient statutory risk-adjusted capital position.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Analysts
Marc Steinberg, 908-439-2200, ext. 5225
marc.steinberg@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
william.pargeans@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
Source: A.M. Best Co.
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