Moody's upgrades Nuveen Finance

Moody's Investors Service said it upgraded the issuer and senior unsecured ratings of Nuveen Finance, LLC to Baa1 from Baa2.

This action follows news that Nuveen Finance's ultimate parent, Teachers Insurance and Annuity Association of America, along with Nuveen LLC, will issue $1 billion of 10-year senior unsecured notes and use the proceeds to redeem Nuveen Finance's November 2019 senior unsecured notes totaling $1 billion, Moody's explained.

Nuveen Finance's November 2024 notes will remain outstanding.

Moody's also said it assigned a backed senior unsecured rating of Aa2 to Nuveen, LLC, reflecting implicit and explicit support from Teachers Insurance, including an irrevocable and unconditional guarantee.

The outlook is stable.

The upgrades reflect a view that the explicit guarantee provided by Teachers Insurance to Nuveen, LLC's new debt demonstrates an increased level of implicit support for Nuveen Finance, Moody's said.

Nuveen's standalone credit profile reflects its market leading position in the high margin closed-end fund business, its well-diversified mix and strong retail distribution capabilities, the agency said.

These strengths are somewhat offset by the company's nascent international presence and high financial leverage at 4.2x as of June 30, Moody's said.

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