A.M. Best Assigns Debt Rating to StanCorp Financial Group's Forthcoming Junior Subordinated Debentures.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb-" to the forthcoming junior subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before to be issued by the StanCorp Financial Group, Inc. (StanCorp) (Portland, OR) [NYSE NYSE See: New York Stock Exchange :SFG SFG StanCorp Financial Group SFG San Francisco Giants (baseball team) SFG Special Forces Group SFG Sum Frequency Generation SFG Square Foot Gardening SFG Symmetrical Field Geometry (JBL speaker technology) ]. The rating outlook is stable. Proceeds from the current securities offering will primarily be used to repurchase shares of the company's common stock. Additionally, a portion of the proceeds will fund an acquisition of real estate assets by StanCorp Real Estate, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which are to be transferred from Standard Insurance Company (both are wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. ). The securities issuance provides options for StanCorp's capital initiatives through share buybacks or potential acquisitions and the real estate restructuring will more efficiently reflect each subsidiaries asset holdings. The debentures have a final maturity of 60 years, are non-callable at par for the first 10 years and are subject to a Replacement Capital Covenant (Covenant). The Covenant limits replacement of the debentures for the first 40 years redeemable only with securities, which carry comparable "equity like" characteristics. The rating reflects the planned subordination of these securities to all of StanCorp's existing and future debt obligations, and those of its subsidiaries, including guarantees and trust preferred securities. StanCorp plans to preserve their unadjusted debt-to-capital ratio at an appropriate level and will maintain more than adequate coverage ratios. StanCorp continues to be a disciplined writer in the competitive employee benefits market. StanCorp has been placing greater emphasis on growing its asset management segment in recent years. For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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