A.m. best assigns rating to genworth financial, inc.’s new senior notes

Oldwick, n.j.--(business wire)--a.m. best co. has assigned a debt rating of “bbb” to the newly issued $400 million 7.625% senior unsecured notes due 2021 issued by genworth financial, inc. (genworth) (headquartered in richmond, va) (nyse: gnw). the notes are a drawdown from genworth’s universal shelf registration, which was filed in august 2009. the outlook assigned to this debt rating is negative. the ratings on genworth’s domestic life/health insurance companies and existing debt securities are unchanged. genworth intends to use the net proceeds from the offering for general corporate purposes, of which some portion is expected to be used to retire maturing debt in 2011. the company continues its successful strategy of raising capital well in advance of maturing securities to lessen the pressure of having to access the capital market at inopportune times. following the issuance, a.m. best notes the small impact to genworth’s pro forma adjusted debt-to-capital and interest coverage, as the company continues to maintain excess capital at the holding company level to provide an additional coverage cushion. management has indicated its desire to moderately reduce financial leverage over the next two years. the principal methodology used in determining these ratings is best’s credit rating methodology - global life and non-life insurance edition, which provides a comprehensive explanation of a.m. best’s rating process and highlights the different rating criteria employed. additional key criteria utilized included “a.m. best’s ratings & the treatment of debt.” methodologies can be found at www.ambest.com/ratings/methodology. founded in 1899, a.m. best company is the world's oldest and most authoritative insurance rating and information source. for more information, visit www.ambest.com. copyright © 2011 by a.m. best company, inc. all rights reserved.
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