A.M. Best Assigns Debt Rating to MetLife, Inc.'s Exchangeable Surplus Trust Securities

Business Wire, Dec 6, 2007

OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb " to MetLife, Inc.'s (MetLife) [NYSE: MET] announced $700 million junior subordinated fixed-to-floating rate exchangeable surplus trust securities offering, due 2067. The rating outlook is stable. MetLife and its life/health subsidiaries' existing financial strength, issuer credit and debt ratings are unchanged.

MetLife will be issuing these securities through its newly established MetLife Capital Trust IV (Trust), a statutory trust domiciled in Delaware. A.M. Best expects the proceeds from this offering to be used by the Trust to purchase surplus notes of Metropolitan Life Insurance Company (MLIC) (New York, NY). MLIC will, in turn refinance surplus notes issued as part of financing the 2005 Travelers acquisition, with any excess cash from this offering to be used for general corporate purposes of MetLife.

The rating reflects MetLife's diverse business mix, prominent market position in several business lines, strong financial discipline and favorable operating results. These strengths are enhanced by the significant financial flexibility, diverse sources of revenues and earnings and the global market presence of MetLife. MetLife maintains strong fixed charge coverage and a strong liquidity profile. A.M. Best notes that MetLife's financial leverage and interest coverage ratios are within expectations for its current ratings.

A.M. Best has granted the notes 75% equity credit for purposes of determining financial leverage. This treatment reflects its hybrid characteristics such as a 60-year maturity, the ability of the issuer to defer interest up to 10 years with cumulative and compounding coupons and trigger events. In addition, the notes are subordinated to all other debt instruments in the company.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.