A.M. Best Assigns Indicative Ratings to MetLife's Shelf Registration.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 23, 2004 A.M. Best Co. has assigned indicative ratings of "a" senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. , "a-" subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". , "a-" preferred securities and "bbb+" preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. "to MetLife Inc. (NYSE NYSE See: New York Stock Exchange :MET) (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY) for the $5 billion shelf registration recently filed with the Securities and Exchange Commission which supercedes the $4 billion shelf registration filed in May 2001. Additionally, about $44 million remains un-issued from the company's prior shelf and is blanketed by the new registration. Concurrently, all existing debt ratings are affirmed. The financial strength ratings on MetLife and its subsidiaries are unaffected. A.M. Best expects MetLife's debt-to-capital ratio to remain within the 25% to 30% range in the near to medium term. Additionally, A.M. Best believes MetLife's future earnings will provide strong debt service coverage and enable capitalization to remain fairly constant. These ratings also reflect the organization's diverse sources of revenue and earnings, its well-established brand name, the prominent market positions of its principal life insurance lines of business and the overall balance of the organization provided by its investment management, property and casualty, international and financial service subsidiaries. A.M. Best notes the company's investment management strategies have historically produced solid contributions to earnings due to the diverse nature of its investment portfolio. Additionally, A.M. Best views favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. management's ongoing actions to improve MetLife's capitalization, which currently reflects a level commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with a Superior rating. The following indicative shelf ratings have been assigned: -- MetLife, Inc.-- -- "a" senior unsecured debt rating -- "a-" subordinated debt rating -- "bbb+" preferred stock rating -- MetLife Capital Trust II and III-- -- "a-" preferred securities rating For a complete list of A.M. Best debt ratings, please visit http://www3.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. |
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