Moody’s gives TIAA notes Aa3

Moody's Investors Service said it assigned an Aa3 (hyb) subordinated debt rating to the expected issuance of around $1 billion of 30-year fixed-rate surplus notes by Teachers Insurance and Annuity Association of America.

The proceeds are expected to be used for general corporate purposes.

The rating reflects the typical two-notch difference between an operating company's insurance financial strength rating and its surplus note rating, because of the subordination of surplus notes to policyholder and senior creditor claims, Moody’s explained.

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