OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has assigned a debt rating of “bb+” to the recently issued $750 million 5.65% fixed-to-floating rate junior subordinated notes due 2053 of ING U.S., Inc. (ING U.S.) (headquartered in New York, NY). The assigned outlook is stable. ING U.S., which plans to be rebranded as Voya Financial, completed its initial public offering (IPO) in early May and trades on the New York Stock Exchange under the symbol “VOYA.”
ING U.S. intends to use the note proceeds for the repayment of all amounts currently outstanding on an existing term loan agreement under a syndicated bank facility entered into in April 2012 and the partial repayment of amounts owed to ING Verzekeringen N.V., a subsidiary of ING Groep N.V. (ING Group) (Netherlands). Following the IPO, ING Group’s ownership of ING U.S. was reduced to 75%.
The rating recognizes ING U.S.’ strong market position in the life insurance and retirement markets, profitable operating results and sound level of risk-adjusted capital. The assigned rating also reflects A.M. Best’s favorable view of ING U.S. management’s ability to execute its capital plans. The new junior subordinated notes, together with $850 million of 10-year senior notes issued in July 2012 and $1.0 billion of five-year senior notes issued in February 2013, as well as about $600 million in net IPO proceeds, should facilitate ING U.S. achieving its targeted independent capital structure. As such, ING U.S.’ financial leverage and interest coverage fall within A.M. Best’s guidelines for its current ratings.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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