AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” (Good) to the forthcoming $400 million, 3.85% senior unsecured notes, due Dec. 22, 2051, and a Long-Term IR of “bbb-” (Good) to the $350 million, 4.625% non-cumulative preferred stock, to be issued by Brighthouse Financial, Inc. (Brighthouse) (headquartered in Charlotte, NC) [NASDAQ: BHF]. The outlook assigned to these Credit Ratings (rating) is stable.
In addition, on Nov. 9, 2021, Brighthouse Financial announced the commencement of a cash tender offer for an aggregate purchase price of up to $500 million (subsequently increased to up to the $750 million aggregate purchase price) of its outstanding 3.7% senior unsecured notes due 2027 and its 4.7% senior unsecured notes due 2047. Brighthouse intends to use the net proceeds of the issuances of the 3.85% senior unsecured notes and the 4.625% non-cumulative preferred stock to fund the cash tender offer.
The company estimates its risk-based capital ratio range between 520% and 540% as of third-quarter 2021. The overall impact to financial leverage and coverage metrics is expected to be approximately neutral.
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Senior Financial Analyst
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