va bene competere ma questa voce di bilancio è stata pari al valore della società per il 2018 in negativo e tre volte la capitalizzazione nel 2019 fortunatamente in positivo stavolta, son nati da una costola di Met Life ma pare che si mettano di impegno a replicarne la debacle giocando pesante.
Rating Action:
New York , May 20, 2020 -- Moody's Investors Service, ("Moody's") has assigned a Ba2(hyb) rating to Brighthouse Financial, Inc.'s (senior debt Baa3 stable) anticipated issuance of around $300 million of Series B non-cumulative preferred stock. Proceeds from the offering will be used to repay a portion of the remaining borrowings under its term loan scheduled to mature in 2024. The outlook on Brighthouse and its insurance subsidiaries remains stable.
RATINGS RATIONALE
The Baa3 senior unsecured debt rating on Brighthouse Financial and the A3 insurance financial strength (IFS) ratings of its insurance company subsidiaries are based on the Brighthouse's solid asset quality, with modest amount of exposure to high-risk assets, namely below-investment grade securities and alternative investments. Brighthouse's capital adequacy is strong, largely to enable the company to proactively manage the volatility and tail risk associated with its variable annuity block.
These strengths are mitigated by risk exposures related to a concentration of legacy variable annuities, mostly with guarantees, managing a run-off block of institutional spread businesses and universal life with secondary guarantees and modest projected statutory capital generation partially due to the high cost of hedging market sensitive liabilities.
The Ba2(hyb) rating on the preferred securities reflects Moody's typical notching for instruments issued by insurers relative to their IFS and senior debt ratings. Because of equity-like features contained in the preferred stock, the security will receive partial equity treatment in Moody's leverage calculation and adjusted leverage will improve as a result of the transaction.
We believe the coronavirus-driven bear market, ultra-low interest rates, and the restricted movement of the US population will stress most aspects of life insurers' financials, including those of Brighthouse. This includes sales, investment income, reserves and capital adequacy. Most life insurers, including Brighthouse, start with healthy capital and asset quality to weather this storm over the near term, but these conditions will weaken their creditworthiness if they persist.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The following factors could lead to an upgrade of the ratings: 1) run-rate statutory capital generation in excess of $500 million; 2) shift in the business mix towards more protection-oriented products (e.g., life insurance); and 3) earnings and cash flow coverage above 6x and 4x, respectively. Conversely, the following factors could lead to a downgrade of the ratings: 1) organic capital generation diminishes and GAAP return on capital less than 5%; 2) earnings and cash flow coverage below 4x and 2x, respectively; 3) adjusted financial leverage (excluding AOCI) above 30%.
AFFECTED RATINGS
The following rating was assigned:
Brighthouse Financial, Inc.: preferred stock non-cumulative, assigned Ba2(hyb)
The outlook on Brighthouse and its affiliates remains stable.
The principal methodology used in this rating was Life Insurers Methodology published in November 2019 and available at
https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1187348 . Alternatively, please see the Rating Methodologies page on
www.moodys.com for a copy of this methodology.
Brighthouse is headquartered in Charlotte, North Carolina. As of March 31, 2020, Brighthouse reported total assets of $224 billion and total equity of $20.4 billion.
