Teachers Insurance&Annuity Assn. of America Proposed Surplus Notes Rated 'AA-'

NEW YORK (S&P Global Ratings) May 4, 2020--S&P Global Ratings said today that it has assigned its 'AA-' subordinated debt rating to Teachers Insurance&Annuity Assn. of America's (TIAA) proposed surplus notes due 2050. The company intends to use the net proceeds from the new surplus notes for general corporate purposes. We do not expect this issuance to affect our current ratings on TIAA. We are rating these surplus notes two notches below our financial strength rating on TIAA. One notch represents subordination to the policyholder obligations, the company's indebtedness, and other creditor claims including the $1.0 billion principal amount of 4% senior notes due 2028 issued by Nuveen LLC and guaranteed by TIAA. The second notch captures payment

...May 4, 2020 NEW YORK (S&P Global Ratings) May 4, 2020--S&P Global Ratings said today that it has assigned its '##-' subordinated debt rating to Teachers Insurance & Annuity Assn. of America's (TIAA) proposed surplus notes due 2050. The company intends to use the net proceeds from the new surplus notes for general corporate purposes. We do not expect this issuance to affect our current ratings on TIAA. We are rating these surplus notes two notches below our financial strength rating on TIAA. One notch represents subordination to the policyholder obligations, the company's indebtedness, and other creditor claims including the $1.0 billion principal amount of 4% senior notes due 2028 issued by Nuveen LLC and guaranteed by TIAA. The second notch captures payment risk since payments may be deferred due to regulatory restrictions. We classify these surplus notes as having intermediate equity credit, subject to a limit of 15% of total adjusted capital, as long as they have at least 10 years until...

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