A.M. Best has assigned a debt rating of "a-" to the recently issued $300 million 3.35% senior unsecured notes due March 2025 of Lincoln National Corporation (Lincoln) (Fort Wayne, IN) [NYSE:LNC]. The outlook assigned is stable, which is consistent with the outlook assigned to the core insurance operating subsidiaries of Lincoln. (For further details, please see A.M. Best press release dated Dec. 11, 2014.)
Lincoln has issued the notes from its recently filed universal shelf registration statement and intends to use the proceeds to fund an upcoming $250 million 4.3% senior unsecured notes maturity in June 2015. The remaining proceeds will be used for general corporate purposes including share repurchases. The company's financial leverage and interest coverage measures remain within A.M. Best's guidelines for the assigned rating with good financial flexibility at the holding company.
The ratings reflect LNC's leading marketing position within its core business segments, strong operating performance and favorable levels of risk-adjusted capitalization, along with prudent capital and underwriting management.
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.
Key insurance criteria reports utilized:
- Analyzing Insurance Holding Company Liquidity
- Insurance Holding Company and Debt Ratings
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center
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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