A.M. Best Assigns Debt Ratings to Genworth Financial, Inc.'s Senior Notes and Commercial Paper Program.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 10, 2004 A.M. Best Co. has assigned a rating of "a-" to $1.9 billion of fixed and floating notes issued by Genworth Financial, Inc. (Genworth) (NYSE NYSE See: New York Stock Exchange : GNW GNW Genworth Financial (stock symbol) GNW Good News Week (TV show) GNW Great Northwest GNW Great Northern War (1700-1721) GNW Guns 'n' Wankers (band) ) (Richmond, VA). A.M. Best also assigned an AMB-1 rating to the approximately $500 million in commercial paper program issued by the company. These proceeds will be used to repay GE Financial Assurance Holdings, Inc. (GEFA GEFA Genuine Fashion Accessories (Philippines) GEFA General Electric Capital Financial Assurance Holdings, Inc. ), a wholly owned subsidiary 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. of General Electric Company (GE), for the existing $2.4 billion bank debt credit facilities used in connection with the spin-off of Genworth on May 25, 2004. The ratings reflect Genworth's leading position in life insurance, annuities and accident and health products including long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. insurance, which add diversity to its other businesses, as well as the group's historical operating performance that has grown both internally and through acquisitions. A.M. Best believes that Genworth's new balance sheet has a manageable amount of leverage that can comfortably be serviced from the earnings generated by its operating insurance companies. Genworth plans to operate at a level of debt to capital of below 25%, which is within the acceptable leverage range for the assigned rating. A debt rating of "a-" has been assigned to the following: Genworth Financial, Inc.-- -- $500,000,000 LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). floating rates notes, due 2007 -- $500,000,000 4.75% senior notes, due 2009 -- $600,000,000 5.75% senior notes, due 2014 -- $300,000,000 6.50% senior notes, due 2034 The short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. rating of AMB-1 has been assigned to the $500,000,000 commercial paper rating program of Genworth Financial, Inc. The following debt ratings were assigned on May 25, 2004: -- "bbb" to $100,000,000 preferred stock -- "a-" to $600,000,000 2.5% senior notes, due 2009 For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debtratings/. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion