Moody's gives New York Life notes Aa2

Moody's Investors Service said it has assigned a Aa2 debt rating, with a negative outlook, to $1 billion of fixed-rate surplus notes due 2039 to be issued by New York Life Insurance Co. (Aaa insurance financial strength rating; negative outlook).

The proceeds of the surplus notes will be used for general corporate purposes, the agency added.

Moody's said that the surplus notes are subordinate to all policy claims and indebtedness at New York Life, noting that interest and principal repayment on these surplus notes are subject to prior approval from the Superintendent of Insurance of the state of New York.

The Aa2 rating on the surplus notes reflects the normal two-notch difference Moody's said it maintains between an operating company's insurer financial strength rating and the rating of subordinated surplus notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.