Business Wire | Nov 18, 2020 12:52PM EST

AM Best Assigns Issue Credit Rating to Brighthouse Financial, Inc.'s New Preferred Shares

Nov. 18, 2020

OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 18, 2020--AM Best has assigned a Long-Term Issue Credit Rating of "bbb-" to the $500 million, 5.375% non-cumulative preferred stock, Series C, to be issued by Brighthouse Financial, Inc. (Brighthouse) (headquartered in Charlotte, NC) [NASDAQ: BHF]. The outlook assigned to this Credit Rating (rating) is stable.

This transaction follows other capital transactions executed in 2020 by Brighthouse. The company intends to use the net proceeds to repay a portion of its senior notes maturing in 2027 and 2047. The impact of the transaction on leverage is expected to be slightly positive after the company pays down part of the debt. Brighthouse recently announced that it lowered its U.S. GAAP long-term mean reversion interest rate assumption by 75 basis points to 3.0%, which affected GAAP equity negatively. However, on a statutory basis, the company provides an estimated combined risk-based capital ratio range between 525% and 545% as of third-quarter 2020, an improvement from the first half of 2020.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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CONTACT: Bruno Caron Senior Financial Analyst +1 908 439 2200, ext. 5144 bruno.caron@ambest.com

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