Teachers Insurance and Annuity Association of America has secured an aa long-term issue credit rating for its $2 billion surplus notes due 2056, with a stable outlook. The issuance supports general corporate purposes and may partly fund financing tied to Nuveen's announced cash acquisition of Schroders plc.
Highlights
- TIAA issued $2 billion of 6.05% fixed-rate surplus notes maturing in 2056, which AM Best rated aa with a stable outlook.
- Proceeds from the surplus notes may finance general corporate purposes and support Nuveen's planned cash acquisition of Schroders plc announced for February 2026.
- AM Best projects TIAA's adjusted leverage to rise to about 15% pro-forma due to the purchase financing terms connected to the transaction.
Rating assignment and financing purpose
As reported by AM Best, the rating agency has assigned a Long-Term Issue Credit Rating of aa, Superior, to the 6.05% fixed-rate surplus notes issued by TIAA. The notes total $2 billion, mature in 2056 and carry a stable outlook.The proceeds are intended for general corporate purposes. AM Best says the funding may also be used in part for purchase financing related to TIAA company Nuveen's cash acquisition of Schroders plc, which was announced in February 2026.
Leverage effect and prior indication
AM Best expects the transaction to lift adjusted leverage at TIAA to about 15% on a pro-forma basis because of the purchase financing terms.The press release also says this action relates to a previously assigned indicative Long-Term Issue Credit Rating for the note, which has now been withdrawn.
Our earlier coverage of Fitch’s upgrades to legacy Freddie Mac asset-backed securities highlighted how improving collateral performance can drive positive rating actions. Fitch upgraded 18 note classes across 12 transactions from the 2016 and 2018 vintages after reviewing performance through the March 2026 remittance reports, pointing to reduced credit risk for the upgraded classes while ongoing surveillance continues.
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