Best’s News & Research Service - April 12, 2022 11:15 AM (EDT)
AM Best Assigns Issue Credit Rating to Sammons Financial Group, Inc.’s Senior Unsecured Notes
- April 12, 2022 11:15 AM (EDT)
Oldwick //BestWire// - AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “a-” (Excellent) to Sammons Financial Group, Inc.’s (SFG, Inc.) (Delaware) recently announced $500 million 4.75% senior unsecured notes due 2032. The outlook assigned to this Credit Rating (rating) is stable. SFG, Inc. is an intermediate holding company indirectly owned by Sammons Enterprises, Inc. (SEI). All other ratings of SEI and its subsidiaries are unchanged.
The proceeds from this debt issuance are expected to be used for general corporate purposes, including financing business growth at SFG, Inc.’s two insurance operating subsidiaries—Midland National Life Insurance Company and North American Company for Life and Health Insurance. AM Best notes that SFG Inc.’s financial leverage will increase modestly to approximately 18%, which is well within AM Best’s guidelines for its current rating. AM Best views SFG Inc.’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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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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.