A.M. Best Assigns Rating to Genworth's New Senior Unsecured Notes.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "a-" to Genworth Financial Genworth Financial is an international financial services organization that offers a portfolio of primarily consumer-focused products through its various companies, including annuities, combination products, investment services, life insurance, long term care insurance, medicare , Inc.'s (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.) proposed offering of $350 million 4.95% 10-year senior unsecured notes. The rating outlook is stable. On June 23, 2005, A.M. Best affirmed Genworth's existing issuer credit (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) and debt ratings and the financial strength ratings of Genworth's core life/health insurance subsidiaries. A.M. Best expects Genworth to use the proceeds from the offering to repay outstanding debt under its existing commercial paper program. Consequently, the company's financial leverage is expected to remain essentially unchanged at approximately 23%. Genworth's 2005 interest coverage is projected to be roughly nine times, which is well within the range for its current ratings. Absent an acquisition, A.M. Best expects Genworth to maintain financial leverage in the 25% range. Genworth's ratings reflect its solid operating performance, favorable liquidity position, adequate risk-adjusted capitalization and extensive distribution sources. Its established presence in the mortgage insurance, term life and 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. markets provides significant earnings diversification. The primary offsetting rating factors are Genworth's exposure to industry-wide uncertainties associated with long-term care liabilities, as well as its exposure to the mortgage insurance business, where results are heavily dependent upon prevailing economic conditions. However, A.M. Best notes that the company's comprehensive risk management program and its expertise in the underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and pricing of these businesses partially mitigates these concerns. 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. For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit www.ambest.com/lh. 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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