Moody's rates MetLife debenture A3

Moody's Investors Service said it assigned an A3 rating to MetLife, Inc.'s $1 billion fixed-to-floating rate junior subordinated debentures due 2066.

The outlook is stable.

Moody's expects that the proceeds will be used primarily to repay short-term debt.

The agency said the rating reflects MetLife's strong brand recognition, leading market positions in both the individual and group life businesses, a large career agent sales force and the company's diversified earnings and business mix. MetLife has shown improved financial results, diversified its distribution channels and has continued to implement changes that take advantage of expense savings and other synergies throughout its operations.

However, these strengths are somewhat offset by the slow industry growth outlook for individual life products, the company's growing exposure to institutional spread business and its increased, though moderating, financial leverage and reduced cash coverage of fixed charges associated with the Travelers acquisition, Moody's said.

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