AM Best Assigns Issue Credit Rating to Newly Issued Surplus Notes from Knighthead Annuity & Life Assurance Company

OLDWICK, NJ–(BUSINESS WIRE)–
AM Best assigned a long-term issue credit rating of “bbb” (good) to newly issued securities. $50 million 9.375% excess notes due in 2042 issued by Knighthead Annuity & Life Assurance Company (Knight’s pension) (Cayman Islands). The outlook attributed to the credit rating (rating) is stable.

Proceeds from this debt issuance are expected to be used for general corporate purposes, including supporting additional reinsurance business and mergers and acquisitions. AM Best notes that Knighthead Annuity’s leverage will increase slightly, remaining well below AM Best’s guidelines for its current rating. AM Best views Knighthead Annuity’s debt servicing capabilities favorably, with sufficient liquidity to service its debt and access to additional capital through its holding company.

AM Best notes that these excess tickets must be issued by a Cayman-domiciled life insurance company. The notes have characteristics similar to traditional notes issued in United States and repayment of interest, principal and any repayments in connection with the Notes may only be made with the prior approval of the Cayman Islands Monetary Authority. The Notes are subordinate to the claims of policyholders, plaintiffs and beneficiaries, and all other creditors of Knighthead Annuity. The company has the option to repay all or part of the note after 10 years, in 2032.

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United Statesthe company does business in more than 100 countries with regional offices in London, amsterdam, dubai, hong kong, Singapore and Mexico City. For more information, visit www.ambest.com.