Fitch assigns SBL notes BBB-

Fitch Ratings said it assigned SBL Holdings, Inc.’s proposed issuance of senior unsecured notes an expected BBB-. The ratings previously assigned to SBLH and its insurance operating subsidiaries are unaffected by this rating action.

The agency gave the notes a rating one notch below SBLH’s issuer default rating, which reflects standard notching based on Fitch’s insurance rating criteria,” the agency said.

SBLH plans to use the proceeds to make a partial repayment on the company’s revolving line of credit.

“As a result, financial leverage, as measured by Fitch, is expected to remain below the 25% rating sensitivity. GAAP based fixed-charge coverage is expected to remain strong and in line with Fitch’s rating expectations over the near to intermediate term,” the agency said in a press release.

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