Fitch Ratings has assigned a 'BBB+' rating to the
The new issuance ranks equally with RGA's existing senior notes and is thus rated equivalently.
Key Rating Drivers
The company expects to use the net proceeds from the offering for general corporate purposes. Pro forma for the
Consistent with Fitch's approach for RGA's other unsecured senior notes, the securities are rated one notch below RGA's Issuer Default Rating (IDR; A-/Stable) to reflect 'below average' recovery expectations, consistent with standard criteria assumptions. Fitch upgraded RGA's ratings on
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Improvement to a more favorable business profile;
Financial leverage maintained below 23%;
TFC ratio of 0.6x or below on a sustained basis;
GAAP operating return on equity sustained above 12%;
GAAP asset leverage below 6x.
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A decline in GAAP earnings as evidenced by ROE below 8% or fixed-charge coverage below 7x;
Holding company financial leverage above 32%;
Total financing and commitments (TFC) ratio maintained materially above 1x;
GAAP asset leverage of 12x or higher.
Date of Relevant Committee
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
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