A.M. Best Co. has assigned an issuer credit rating of “bb+” to Fidelity & Guaranty Life Holdings, Inc. (FGLH) (Delaware) and a debt rating of “bb+” to the recently announced $300 million 6.375% senior unsecured notes due 2021 to be issued by FGLH. The outlook assigned to both ratings is stable.
FGLH and its subsidiaries, which include Fidelity & Guaranty Life Insurance Company and Fidelity & Guaranty Life Insurance Company of New York, were acquired in 2011 by Harbinger Group Inc (HGI) [NYSE: HRG], a diversified holding company that is majority owned by funds associated with Harbinger Capital Partners LLC (Harbinger). The existing ratings of FGLH’s life insurance subsidiaries are unaffected.
Proceeds of the debt issuance will be used to provide capital for growth and to fund a dividend to HGI. A.M. Best notes that FGLH’s adjusted financial leverage is expected to remain below the 30% range, which is within A.M. Best’s guidelines to support the assigned ratings. Additionally, FGLH’s interest coverage is expected to remain within A.M. Best’s expectations for its assigned rating level. Furthermore, A.M. Best notes that HGI’s business model employs significant financial leverage to meet its business objectives and relies on dividend payments from FGLH to help cover its debt service.
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. Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV