Moody’s assigns Symetra notes Baa3

Moody's Investors Service said it assigned a Baa3 senior debt rating with a stable outlook to Symetra Financial Corp.’s issuance of $250 million of 10-year fixed-rate senior unsecured notes.

Proceeds are expected to be used for general corporate purposes, which may include but are not limited to working capital, capital expenditures, repayment of outstanding indebtedness, stock repurchases and dividends. The debt offering is a drawdown from a shelf registration filed in July.

"Symetra's additional debt issuance will modestly reduce financial flexibility. Proforma adjusted financial leverage will increase to approximately 18% from 14% at year-end 2013," Moody's assistant vice president Shachar Gonen said in a news release.

Going forward, Moody's anticipates that the company's adjusted financial leverage will remain below the 25% ratings expectation level. Earnings coverage is expected to decline to the mid-6x range from 8.8x at year-end 2013, but remains in line with the rating level.

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