This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

A.M. Best Assigns Debt Rating To New Senior Notes Of ING U.S., Inc.

Stocks in this article: ING

A.M. Best Co. has assigned a debt rating of “bbb” to the recent issuance of $1.0 billion 2.90% five-year senior unsecured notes of ING U.S., Inc. (ING U.S.) (headquartered in New York, NY). ING U.S. is currently the holding company for the U.S. operations of ING Groep N.V. (ING Group) (Netherlands) (NYSE: ING). The assigned outlook is stable.

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. Although historically supported by its European parent, A.M. Best notes that ING Group has filed with the SEC for an initial public offering (IPO) of its U.S.-based retirement, insurance and investment operations during 2013.

The assigned rating also reflects A.M. Best’s expected completion of this process, which will demonstrate ING U.S.’ ability to successfully execute its capital plans. The new senior notes, together with the $850 million 5.5% 10-year notes issued in July 2012 and proceeds from the anticipated IPO, should facilitate ING U.S. achieving its targeted independent capital structure. As such, ING U.S.’ financial leverage and interest coverage are expected to fall within A.M. Best’s guidelines for its current ratings. The proceeds from the new senior notes will be used for general corporate purposes, including the repayment of outstanding borrowings.

Partially offsetting these positive rating factors is ING U.S.’ ongoing exposure to both equity markets and interest rates through product guarantees, spread compression as well as its material holdings of below investment grade structured securities and commercial mortgage loans. Additionally, the inherent uncertainty surrounding the timing and execution of the IPO process could negatively affect the group’s business profile with respect to products, customers, distribution and market positions, in addition to having an unfavorable effect on leverage and interest coverage metrics.

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.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.



1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs