Best’s News & Research Service - March 27, 2024 08:39 AM (EDT)
AM Best Assigns Issue Credit Rating to Sammons Financial Group, Inc.’s New Senior Unsecured Notes
- March 27, 2024 08:39 AM (EDT)
//BestWire// - AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “a-” (Excellent) to the $750 million 6.875% senior unsecured notes, due March 2034, issued by Sammons Financial Group, Inc. (SFG) (Delaware), an intermediate holding company indirectly owned by Sammons Enterprises, Inc. (SEI). The outlook assigned to this Credit Rating (rating) is stable. SFG’s existing Long-Term IRs remain unchanged.
SFG intends to use the note offering proceeds for general corporate purposes, including financing business growth at SFG’s two insurance operating subsidiaries–Midland National Life Insurance Company and North American Company for Life and Health Insurance. AM Best notes that SFG’s financial leverage will increase modestly to approximately 20%, which is well within AM Best’s guidelines for its current ratings. AM Best views SFG’s debt-servicing capabilities favorably, with sufficient liquidity to service its debt, a well-laddered debt maturity structure and strong interest coverage.
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