OREANDA-NEWS. A.M. Best has assigned an issue rating of “a-” to the recently issued USD 1.0 billion 4.70% senior unsecured notes due June 23, 2046 of Manulife Financial Corporation (MFC) (Toronto, Canada). The outlook assigned to the rating is stable.

The proceeds from the offering will be utilized for general corporate purposes. MFC may redeem the notes on or after June 23, 2021. The notes will be listed and traded on the Taipei Exchange (TPEx) and sold to professional institutional investors. With the issuance of the senior notes, A.M. Best notes that MFC’s existing financial leverage is temporarily elevated but is expected to decrease, should the company elect to redeem callable debt later in 2016. Despite the new issuance, MFC’s financial leverage remains within the range that supports the company’s current ratings.