S&P rates MassMutual Japan bonds A

Standard & Poor's said it assigned its A issue ratings to two yen-denominated subordinated bonds issued by MassMutual Life Insurance Co. (MassMutual Japan; AA-/negative/--).

The issue ratings on the subordinated bond due 2045 and the perpetual bond are two notches lower than the long-term counterparty credit rating on MassMutual Japan. The gap reflects subordination to senior creditors and interest deferral.

The notch-down from the counterparty credit rating is based on the agency’s view that its ultimate parent company, Massachusetts Mutual Life Insurance Co. (MassMutual; AA+/stable/A-1+), will likely extend its support to the subordinated bonds.

S&P said the ratings reflect its view of MassMutual Japan’s strategic importance to MassMutual Financial Group and explicit support from MassMutual in the form of a net-worth maintenance agreement.

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