FINANCIAL INSTITUTIONSISSUER COMMENT 14 April 2016RATINGSMETLIFE, INC. (MET) Moodys SR Unsecured Rating A3Moodys Outlook RURBond-Implied Rating Baa1CDS-Implied Rating Ba1EDF-Implied Rating Ba1As of April 13, 2016ContactsAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research,Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products.For further detail, please see the last page.Market Signals Review.MetLife, Inc.: CDS-Implied Rating Rose, and Then Slipped at Loss of SIFI Designation MetLife, Inc.s CDS-implied rating varied between Ba1 and Baa3 over the last 30 days. The bond- and EDF'-implied ratings match their observations of one month ago. The levels of these three market signals indicate that fixed income investors have not viewed the court decision to lift SIFI1 status from MetLife as a credit positive event.The CDS-implied rating was Ba1 on March 30, rose to Baa3 from April 4 until April 7, and then returned to Ba1 once again (Figure 1). The bond-implied rating was Baa1 one month ago. It briefly climbed to A3 from March 24 until March 28, and then moved back to Baa1, where it remains. The EDFTM-implied rating has not varied from A3 over the last 12 months.FIGURE 1. METLIFE, INC.: MOODYS AND MARKET-IMPLIED RATINGS LAST 30 DAYS (DAILY OBSERVATIONS)According to our ratings gap-conditioned transition matrices, companies rated Baa1 with a bond-implied rating of Aa3 outperformed the broad market 34% of the timeMOODY'S ANALYTICS FINANCIAL INSTITUTIONS2 14 April 2016 Market Signals Review.: MetLife, Inc.: CDS-Implied Rating Rose, and Then Slipped at Loss of SIFI Designationover the following 12 months, matched the markets performance 11% of the time, and underperformed the broad market 55% of the time.As shown in Figure 2, the bond- and CDS-implied ratings gaps currently match their levels of one month ago, the former at -1 notch and the latter at -4...
