CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 17, 2013 12:00 AM (EST)
A.M. Best Co. has assigned a debt rating of "a-" to the recently issued $500 million, 5.125% 30-year senior unsecured notes of Pacific LifeCorp (PLC) (Newport Beach, CA). The assigned outlook is stable. The proceeds from the offering will be utilized to retire a portion ($322.8 million) of the outstanding 9.25% surplus notes, due 2039 of Pacific Life Insurance Company (Pacific Life) (Omaha, NE). Pacific Life is PLC’s lead life insurance subsidiary.
On an adjusted pro-forma basis, financial leverage remains unchanged at approximately 24% following the transactions. Financial leverage and interest coverage are within guidelines for the current ratings, and Pacific Life continues to maintain strong liquidity resources and solid risk-adjusted capitalization levels.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Insurance Holding Company and Debt Ratings.” Best’s Credit Rating Methodology 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.