Standard & Poor's Ratings Services said Thursday that it has assigned its A-minus preferred stock rating to the $175 million of deferrable debentures to be issued by Great-West Life and Annuity Insurance Capital LP.
The deferrable debentures are part of a series of related transactions that will be invested in junior subordinated deferrable debentures of the issuer's affiliate, Great-West Life and Annuity Financial Inc., which has an A-plus rating with a negative outlook. Subject to final regulatory approval, Great-West Financial will in turn invest the proceeds in its primary operating company, Great-West Life and Annuity Insurance Co., in the form of a surplus note as well as give its full and unconditional guarantee on a junior subordinated basis in support of the debentures.
Great-West Life and Annuity Capital is to have the right to defer payments of interest on the debentures at any time but not exceeding 10 semiannual periods. Great-West Life and Annuity Insurance, with $32 billion of assets at June 30, is the principal U.S. operating insurance company for Winnipeg-based Great-West Lifeco Inc.
After purchase of the surplus note from Great-West Life and Annuity Insurance, the company intends to redeem $175 million of capital securities issued in 1999 by Great-West Life and Annuity Insurance Capital I, a trust subsidiary of Great-West Financial.
