A.M. Best Downgrades Ratings of Genworth Financial, Inc. and Its Subsidiaries
The rating downgrades reflect the uncertainty and material execution risk of obtaining the required regulatory approvals associated with Genworth’s recent strategic announcement during the company’s fourth quarter 2015 earnings presentation on
Genworth’s strategic announcement includes the unstacking and restructure of various life and health insurance entities, subject to regulatory approval, coupled with the suspension of marketing of all traditional life and annuity business. As such, if completely executed, GLIC’s business profile will become even more heavily concentrated in long term care (LTC) business, which
The rating reflects A.M. Best’s belief that GLAIC is no longer considered a core business within the
The ICR has been downgraded to “bb+” from “bbb-” with the outlook remaining negative for
The following issue ratings have been downgraded with the outlook remaining negative:
— to “bb+” from “bbb-” on
— to “bb+” from “bbb-” on
— to “bb+” from “bbb-” on
— to “bb+” from “bbb-” on
— to “bb+” from “bbb-” on
— to “bb+” from “bbb-” on
— to “bb+” from “bbb-” on
— to “bb-” from “bb” on
The following indicative ratings on securities available under the universal shelf registration have been downgraded:
— to “bb+” from “bbb-” on senior unsecured debt
— to “bb” from “bb+” on subordinated debt
— to “bb-” from “bb” on preferred stock
— to “bb+” from “bbb-” on senior unsecured debt
— to “bb” from “bb+” on subordinated debt
— to “bb-” from “bb” on preferred stock
Genworth Global Funding Trusts—program rating to “bbb+” from “a-”
— to “bbb+” from “a-” on all outstanding notes issued under the program
This press release relates to rating(s) that have been published on A.M. Best’s 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 A.M. Best’s Recent Rating Activity web page.
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