Research: Rating Action: Moody’s affirms Nuveen Finance, LLC’s Baa1 rating; outlook remains stable

New York, November 11, 2022 — Moody’s Investors Service (“Moody’s”) has affirmed Nuveen Finance, LLC’s (“NFL”) Baa1 long-term issuer and senior unsecured ratings. Moody’s also affirmed the Aa2 backed senior unsecured debt rating of Nuveen, LLC. The rating outlooks remain stable.  

The following rating actions have been taken:

..Issuer: Nuveen Finance, LLC

… LT Issuer Rating, affirmed at Baa1

… Senior Unsecured Rating, affirmed at Baa1

… Outlook, remains Stable

..Issuer: Nuveen, LLC

… Backed Senior Unsecured Rating, affirmed at Aa2

… Outlook, remains Stable

RATINGS RATIONALE

The affirmation of NFL’s Baa1 rating reflects improvement in NFL’s standalone credit profile but also a reduction in the parental support uplift in its rating from three notches to two notches. The reduction of the support uplift in NFL’s rating, which was previously unusually high at three notches, is principally due to the strengthening of NFL’s standalone credit profile which brings its own credit quality closer to Teachers Insurance and Annuity Association of America’s (TIAA) credit quality and reduces the need for parental support.

NFL’s standalone credit profile has strengthened in recent years thanks to steady improvement in the company’s business diversification, leverage and profitability metrics. As a result, NFL is now better positioned to manage through the current challenging operating environment than it was just a few years ago. Moody’s has…