Moody’s rates Globe Life notes Baa1

Moody's Investors Service said it assigned a Baa1 senior debt rating to Globe Life Inc.’s anticipated issuance of up to $400 million of 10-year senior unsecured notes.

“Moody's said that the Baa1 rating of the notes is based on Globe Life's insurance subsidiaries holding a niche market position in distributing life and health insurance products to middle-income households and trade unions, consistently strong profitability, low-risk liability profile and healthy financial flexibility,” Moody’s said in a press release.

The proceeds will be used for general corporate purposes, including partial repayment of outstanding short-term debt.

“According to Moody's, the new issuance will have negligible impact on Globe Life's financial leverage and coverage ratios since the proceeds will be used to repay all of the outstanding term loan borrowings and the remainder used to reduce commercial paper borrowings,” the agency said.

The outlook is stable.

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