S&P gives Belrose securities A-

S&P said it assigned its A- rating to Belrose Funding Trust's proposed issuance of up to $500 million in pre-capitalized trust securities (P-Caps) due Aug. 15, 2030. Lincoln National Corp. created Belrose exclusively for the purpose of issuing these P-Caps.

S&P said it links Belrose’s rating to Lincoln’s senior notes, which would be the underlying asset backing the P-Caps if Lincoln chooses to exercise its issuance option.

The trust will use the proceeds to buy U.S. Treasury securities.

“The purpose of the transaction is to provide LNC with access to capital at a time that may be otherwise inopportune. The circumstances under which LNC may wish to exercise its issuance right may be if it is unable to obtain other sources of financing at all or on terms favorable enough to proceed,” S&P said in a press release.

Proceeds won’t be treated as debt leverage or capital for Lincoln, S&P said.

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