OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Besthas assigned a debt rating of “bbb+” to the $250
million, 4.25% senior unsecured notes due 2024, issued by Symetra
Financial Corporation (Symetra) (headquartered in Bellevue, WA)
[NYSE: SYA]. Concurrently, A.M. Best has assigned indicative ratings of
“bbb+” to senior unsecured debt, “bbb” to subordinated debt, “bbb-” to
junior subordinated debt and “bbb-” to preferred shares of the recently
filed shelf registration of Symetra. The outlook assigned to all ratings
is stable. The existing ratings of Symetra and its subsidiaries are
Symetra Financial intends to use the net proceeds from the sale of the
debt securities for general corporate purposes, which may include but
are not limited to working capital, capital expenditures, repayment of
outstanding indebtedness, stock repurchases and dividends.
A.M. Best anticipates that Symetra’s adjusted financial leverage ratio,
which includes equity credit treatment for a portion of its existing
junior subordinated securities, will increase to approximately 20% as a
result of the current notes offering. Despite the increase in leverage,
A.M. Best notes that Symetra’s financial leverage and interest coverage
ratios remain well within A.M. Best’s guidelines for its current ratings.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Best’s Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Company
Tom Zitelli, 908-439-2200, ext. 5412
Rosendale, 908-439-2200, ext. 5201
Assistant Vice President
Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Source: A.M. Best Company