Investing.com -- AM Best, the credit rating agency, has assigned a long-term issue credit rating of "bbb-" to the $500 million junior subordinated notes issued by Equitable Holdings (NYSE: EQH ), Inc. The notes, which have a 6.7% interest rate, are due in 2055. The rating signifies a good credit quality and the outlook for this rating is stable.
The funds raised from this recent debt issuance by Equitable Holdings are anticipated to be used for the repurchase of the Series B Depositary preferred shares, either in whole or in part, and for general corporate purposes. According to AM Best, the company’s financial leverage and interest coverage ratios are within the rating guidelines.
The long-term issuer credit rating of "bbb+" for Equitable Holdings and the financial strength rating of A for the insurance operations of Equitable Financial Life Insurance (NSE: LIFI ) Company of America (EFLICOA) and Equitable Financial Life Insurance Company (EFLIC) remain unchanged. Both EFLICOA and EFLIC are collectively known as Equitable Life.
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