MetLife receives 'bbb+' credit rating for new subordinated notes issuance
- On March 25, 2025, AM Best assigned a 'bbb+' credit rating to MetLife's new subordinated notes.
- The $1 billion notes have a 6.35% interest rate and mature on March 15, 2055.
- The stable outlook on the rating indicates MetLife's financial strength and stability in the market.
In Oldwick, New Jersey, on March 25, 2025, AM Best announced the assignment of a Long-Term Issue Credit Rating of 'bbb+' to MetLife, Inc.'s newly issued subordinated notes worth $1 billion. These notes, which carry an interest rate of 6.35%, are due to mature on March 15, 2055. The outlook accompanying this credit rating is stable, signifying that MetLife's position is secure at this time. The issuance is a significant step for MetLife, especially considering its strong financial structure and historical performance metrics that align with its existing ratings. MetLife, headquartered in New York, NY, continues to maintain a strong holding company liquidity, which supports its financial leverage and interest coverage metrics. The consistency of its credit ratings along with the newly assigned rating highlights the financial robustness that MetLife has built over the years in the competitive insurance industry. AM Best’s favorable assessment of the company's financial health reflects positively on MetLife’s reputation in the market. This rating action relates directly to the overall support and stability of MetLife's operational performance, ensuring that investors have a substantial degree of confidence in the company's future financial prospects. AM Best, recognized as a leading global credit rating agency, specializes in assessing the insurance industry's financial health and risk factors, which reinforces the significance of its ratings. The announcement not only signifies MetLife's current standing, but it also serves to inform investors and the market about expected changes in the company’s capital structure following the issuance of the new subordinated notes. With a fixed rate of 6.35%, these notes may now enjoy increased subscription levels owing to the widespread recognition of the 'bbb+' rating which indicates a good credit quality level. The ongoing stability of MetLife’s ratings confirms that its operational and financial strategies are aligned effectively to reassure stakeholders as the insurance market evolves.