|[May 09, 2014]
A.M. Best Assigns Rating to Sun Life Financial Inc.'s New Subordinated Debentures
OLDWICK, N.J. --(Business Wire)--
A.M. Best has assigned a debt rating of "bbb+" to CAD 250 million
of Series 2014-1 subordinated unsecured 2.77% fixed/floating debentures
due 2024 to be issued by Sun Life Financial Inc. (SLF) (Ontario,
Canada) [NYSE: SLF]. The outlook assigned is stable.
A.M. Best expects SLF to utilize the proceeds from the debentures to
fully redeem its Series 6R preferred shares that are callable on June
30, 2014. Since the principal amounts are similar, there is no impact on
SLF's financial leverage ratio. Going forward, SLF's interest coverage
will benefit slightly from the debentures' lower coupon rate.
The ratings of SLF and its subsidiares were affirmed with a stable
outlook on May 1, 2014. (For further details, see press release.)
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a
comprehensive explanation of A.M. Best's rating process and contains the
different rating criteria employed in the rating process. Best's Credit
Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS
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