(The following statement was released by the rating agency)
NEW YORK, December 08 (Fitch) Fitch Ratings has assigned an 'A'
Great-West Lifeco Inc.'s (GWO) EUR500 million 1.75% 10-year
euro bonds issued on Dec. 7, 2016.
KEY RATING DRIVERS
The rating for the new offering is equivalent to the rating on
senior debt. Proceeds from the issuance will be used for general
purposes. Fitch expects pro forma financial leverage following
the senior note
issuance to increase to 19.7% from 17.8% at Sept. 30, 2016.
Fitch affirmed the ratings of GWO and its insurance operating
a Stable Outlook on July 18, 2016. For more details, see Fitch's
Key rating triggers for GWO's ratings that could lead to an
--Significant improvement in Putnam's earnings to a level on par
other operating subsidiaries;
--Decline in financial leverage to below 15% and a decline in
total leverage to
Key rating triggers for GWO's ratings that could lead to a
--A sustained drop in the company's risk-adjusted capital
position with no plans
or ability to rectify. This would include the U.S. risk-based
falling below 400% and MCCSR ratios falling below 200%.
--Increase in financial leverage to over 25% or an increase in
total leverage to
--Decline in fixed charge coverage to less than 6x.
--Sizable goodwill impairment on Canada Life, London Life or
--Acquisitions outside GWO's historical risk preferences or
expertise, or any
other material changes in risk appetite for the company.
--Reduction in Power Financial Corporation's ownership stake in
FULL LIST OF RATING ACTIONS
Fitch has assigned the following rating:
Great-West Lifeco, Inc.
--EUR500 million 1.75% senior unsecured euro bonds due 2026 'A'.
Fitch currently rates the GWO entities as follows:
Great-West Lifeco, Inc.
--Long-Term IDR 'A+';
--6.14% senior debentures due March 21, 2018 'A';
--4.65% senior debentures due Aug. 13, 2020 'A';
--6.74% senior debentures due Nov. 24, 2031 'A';
--6.67% senior debentures due March 21, 2033 'A';
--5.998% senior debentures due Nov. 16, 2039 'A';
--2.5% Euro-bond debt due April 18, 2023 'A';
--Series F, 5.9% non-cumulative first preferred shares 'BBB+';
--Series G, 5.2% non-cumulative first preferred shares 'BBB+';
--Series H, 4.85% non-cumulative first preferred shares 'BBB+';
--Series I, 4.5% non-cumulative first preferred shares 'BBB+';
--Series L, 5.65% non-cumulative first preferred shares 'BBB+';
--Series M, 5.80% non-cumulative first preferred shares 'BBB+';
--Series N, 2.176% non-cumulative first preferred shares 'BBB+';
--Series O, floating rate non-cumulative first preferred shares
--Series P, 5.4% non-cumulative first preferred shares 'BBB+';
--Series Q, 5.15% non-cumulative first preferred shares 'BBB+';
--Series R, 4.8% non-cumulative first preferred shares 'BBB+';
--Series S, 5.25% non-cumulative first preferred shares 'BBB+'.
GWL&A Financial Inc.
--Long-term IDR 'A+'.
Canada Life Financial Corporation
--Long-term IDR 'A+'.
Great-West Life Assurance Company
--Long-Term IDR 'AA-'.
Canada Life Assurance Company
--Long-Term IDR 'AA-';
--6.4% subordinated debentures due Dec. 11, 2028 'A+'.
Great-West Life and Annuity Insurance Company
--Short-Term IDR 'F1+';
--Commercial paper 'F1+'.
London Life Insurance Company;
Great-West Life and Annuity Insurance Company of New York
Irish Life Assurance plc
--Long-Term IDR 'AA-';
--5.25% subordinated debt 'A'.
Great-West Life & Annuity Insurance Capital, LP II
--7.153% subordinated debentures due 2046 'BBB+'.
Canada Life Capital Trust
--Series B, 7.529% capital securities due June 30, 2052 'A'.
Great-West Life & Annuity Insurance Capital, LP
--6.625% deferrable debentures due Nov. 15, 2034 'BBB+'.
Great-West Lifeco Finance (Delaware) LP
--5.691% subordinated debentures due 2067 'BBB+';
--7.127% subordinated debentures due 2068 'BBB+'.
Jamie R. Tucker, CPA
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
Dafina M. Dunmore, CFA
James B. Auden, CFA
Media Relations: Hannah James, New York, Tel: + 1 646 582 4947,
Date of Relevant Rating Committee: July 18, 2016
Additional information is available on www.fitchratings.com
Insurance Rating Methodology - Effective May 17, 2016 to Sept.
15, 2016 (pub. 17
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