S&P gives A- to Protective Life notes

S&P said it assigned its A- debt rating to the proposed 10-year fixed-rate senior notes to be issued by Protective Life Corp.

These proposed senior notes will rank senior in right of payment to the company’s future debt that is expressly subordinated in right of payment to these notes.

Protective Life has indicated that it will use the proceeds from this issuance for general corporate purposes, including the repayment of the amount outstanding on its credit agreement – $385 million was outstanding as of June 30.

“We don't expect any negative impact on the company's financial leverage or fixed-charge coverage as a result of this issuance. We expect financial leverage to remain near 20% and fixed-charge coverage of 7x-8x in 2018 and 2019,” S&P said in a news release.

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