AM Best Assigns Issue Credit Rating to Massachusetts Mutual Life Insurance Company’s New Surplus Notes

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned Long-Term Issue Credit Rating of “aa-” to the $838.5 million surplus notes issuance, announced by Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA). The surplus notes will be due Oct. 15, 2070. The outlook assigned to this Credit Rating (rating) is stable. All other existing ratings of MassMutual and its subsidiaries are unchanged.

MassMutual engaged in a program in which $615 million of its existing surplus notes outstanding were exchanged, and $838.5 million in new surplus notes were issued. The interest rate for these notes is 3.729%, which will result in lower weighted interest charges on its debt. AM Best does not see any material change in financial leverage and interest coverage ratios, which are within the guidelines for the current ratings.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency and information provider with an exclusive focus on the insurance industry. Visit www.ambest.com for more information.

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Frank Walko CPA FLMI

Financial Analyst

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Christopher Sharkey

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Rosemarie Mirabella

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Jim Peavy

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Source: AM Best