Moody's rates MetLife notes A3

Moody's Investors Service said it assigned an A3 rating with a stable outlook to MetLife, Inc.'s $1 billion series E senior debentures, consisting of two tranches of $500 million each. The outlook is stable.

A portion of the series E debentures is being offered in a scheduled remarketing of a debt component of common equity units first issued in November 2010. Following the settlement of the remarketing, effective Oct. 8, the stated maturity of the tranche 1 and tranche 2 debentures will be Dec. 15, 2017 and Dec. 15, 2044, respectively. After closing of the remarketing, MetLife will settle the stock purchase contracts in the associated common equity units and realize net proceeds of $1 billion, which will consist of proceeds received by participants in the remarketing and cash payments from unitholders who did not participate in the remarketing.

The agency said MetLife's A3 senior debt rating reflects the group's very strong market positions both in the United States and in regions around the world with excellent brand recognition, significant operating scale in many diverse individual life/annuity and group insurance businesses, diversified and controlled distribution and a substantial capital base.

In Moody’s view, these strengths are mitigated by risk exposures related to a concentration of legacy variable annuities with guarantees and institutional spread businesses, relatively large exposure to high-risk assets including alternative investments and relatively weak earnings and cash flow coverage profile for the rating level.

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