Teachers Insurance&Annuity Assn. of America

The outlook is stable, reflecting S&P Global Ratings' expectation that the group will maintain its excellent competitive position while sustaining its excellent capital and exceptional liquidity. It also reflects our stable outlook on the U.S. long-term sovereign credit rating. We could lower the ratings if TIAA's: Unique competitive position in the U.S. higher-education pension market erodes significantly or challenges within its asset management or banking business emerge; Operating performance or capital adequacy deteriorates; or We lower our sovereign credit rating on the U.S. We do not expect to raise our ratings on TIAA in the next two years given our current view of the U.S. sovereign's credit quality, which constrains our ratings on insurers. Real U.S. GDP growth of about

...We expect TIAA to maintain its dominant market position in the U.S. higher education pension market. Teachers Insurance & Annuity Assn. of America (TIAA) is one of the nation's largest private retirement systems with assets under management of $1.116 trillion at Dec. 31, 2018. We anticipate that it will continue to be the market leader in the U.S. higher education pension market, benefitting from its solid reputation for providing quality service and advice, which it has built over many years; a controlled, salaried sales force; a low cost structure; and good operating performance. We anticipate TIAA's financial risk profile to remain excellent. TIAA's capitalization is likely to maintain redundancy at the '###' level per our risk-based capital (RBC) model following a decline in 2017 due to the acquisition of EverBank and a deferred tax asset write-down associated with the tax reform. We believe TIAA will maintain relatively low leverage below 20% and EBITDA fixed charge coverage above...

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