Fitch: Symetra notes BBB+

Fitch Ratings said it assigned a BBB+ rating to new $250 million of 4.25% senior unsecured notes due 2024 issued by Symetra Financial Corp.

The company’s other ratings are unaffected.

The outlook is stable.

Symetra’s strong balance-sheet fundamentals and recent financial performance remain consistent and within expectations, Fitch said.

The agency said it views this opportunistic issuance of debt as removing much of the rating cushion in financial leverage and fixed-charge coverage ratios, the agency said.

The proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, repayment of outstanding indebtedness, stock repurchases and dividends, Fitch said.

The ratings consider Symetra’s lack of significant scale to other highly rated life insurers and the company’s reliance on its niche group medical stop-loss business, which generates a major source of earnings, the agency said.

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