AM Best Assigns Issue Credit Rating to USAA Capital Corporation’s Senior Unsecured Medium Term Notes

OLDWICK, N.J.–(BUSINESS WIRE)–#insuranceAM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “aaa” (Exceptional) to the $500 million, 0.5% senior unsecured medium term notes, due May 1, 2024, issued by USAA Capital Corporation (San Antonio, TX). The outlook assigned to the Credit Rating (rating) is stable. All other ratings of USAA Capital Corporation and its insurance affiliates remain unchanged.

USAA Capital Corporation intends to use the net proceeds from the sale of the senior unsecured notes to finance or refinance projects of United Services Automobile Association (USAA) or any of its subsidiaries that have environmental or social benefits and meet certain eligibility criteria. AM Best notes that USAA Capital Corporation’s $400 million, 2.625% senior unsecured notes issued in 2019 and $400 million, 2.0% senior unsecured notes issued in 2018 matured on June 1, 2021. The net impact of the debt transactions results in a modest decline in financial leverage and increase in interest coverage metrics, which remain within AM Best’s guidelines for the current ratings.

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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Keith Behrmann
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