S&P assigns AA- to Met Tower notes

S&P said it assigned an AA- debt rating to Met Tower Global Funding’s proposed offering of $500 million three-year notes. Met Tower’s primary assets are the funding agreements issued by Metropolitan Tower Life Insurance Co., which is a wholly owned subsidiary of MetLife, Inc. These notes constitute Met Tower’s first offering of debt via a $5 billion program.

The notes are backed by a Metropolitan Tower-issued funding agreement held by Met Tower, and have payment terms that are equivalent to those of the funding agreements. The funding agreement is ranked pari passu with policyholder obligations and, therefore, the ratings on the notes reflect Metropolitan Tower’s financial strength.

“We expect MTLIC to provide ongoing support to MTGF, including payments of any of MTGF’s expenses. We do not consider these notes as financial leverage or capital for MTLIC, or for MetLife on a consolidated basis, since we believe the assets allocated to the program are sufficient to meet any obligations without reliance on the company’s other financial resources,” S&P said.

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