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FOR IMMEDIATE RELEASE
OLDWICK - MAY 12, 2020 02:54 PM (EDT)
AM Best has assigned Long-Term Issue Credit Ratings (Long-Term IR) of “a-” to the $500 million 3.4% senior unsecured notes, due Jan. 15, 2031, and the $300 million 4.375% senior unsecured notes, due June 15, 2050, issued by Lincoln National Corporation (LNC) (Fort Wayne, IN). The outlook assigned to these Credit Ratings (rating) is stable. LNC’s existing Long-Term Issuer Credit Rating and Long-Term IRs remain unchanged.
Proceeds from the notes will be used to pay the $500 million LIBOR plus 150 basis points term loan, due 2022, and the $300 million 4.85% senior notes, due 2021. Furthermore, the company holds $760 million at the holding company, which includes excess funds targeting to pay its $300 million 4.20% senior unsecured notes, due 2022. This plan gives extra financial flexibility in the current COVID-19 pandemic environment, and removes pressure in the medium term to address maturities. LNC’s financial leverage and coverage measures decreased slightly but remain within AM Best’s guidelines.
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 Guide to 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, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.