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AM Best Assigns Issue Credit Rating to Brighthouse Financial, Inc.'s New Preferred StockAM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of "bbb-" to the $425 million 6.6% non-cumulative preferred stock, Series A recently issued by Brighthouse Financial, Inc. (Brighthouse) (headquartered in Charlotte, NC) [NASDAQ: BHF]. The outlook assigned to this Credit Rating (rating) is stable. Brighthouse's adjusted financial leverage is just below its target level of 25% and well within AM Best guidelines for its current rating. Following the preferred stock issuance, financial leverage will remain within guidelines for the assigned rating. While operating results have been somewhat volatile in recent periods due to establishment costs, and some fluctuations in expenses associated with its spin-off from MetLife, Inc., AM Best expects interest coverage to remain in the mid-single digits over the near-term. Brighthouse intends to contribute the net proceeds of the offering to its insurance subsidiary, Brighthouse Life Insurance Company, which intends to use the proceeds for general corporate purposes. Brighthouse's Long-Term Issuer Credit Rating of "bbb+", its existing Long-Term IRs and the ratings of its operating insurance subsidiaries remain unchanged. This press release relates to Credit Ratings that have been published on AM Bests website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases. AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information. Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on businesswire.com: https://www.businesswire.com/news/home/20190319005705/en/ |
