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Moody's: ING U.S. notes Baa3
Moody's Investors Service said it assigned a Baa3 senior debt rating with a stable outlook to the $1 billion five-year senior notes issued in a 144A private placement by ING U.S., Inc.
The notes are guaranteed by Lion Connecticut Holdings, Inc., a wholly-owned intermediate holding company of ING U.S. that directly owns most of the ING U.S. life insurance companies.
The proceeds will be used primarily to pay down outstanding commercial-paper and bank debt.
Moody's said that the Baa3 guaranteed senior debt rating is based on an unconditional and irrevocable guarantee by Lion.
Because of the structural subordination of ING U.S.'s obligations to those of Lion, ING US's senior debt rating would be a notch lower without the Lion guarantee, the agency said.
The agency said it views ING U.S.'s private placement issuance as a credit positive since the proceeds will be used to pay down commercial paper and short-term bank debt.
This completes another step in the company's establishment of an independent capital structure in preparation for its ultimate separation from ING Group NV, Moody's said.
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