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Fitch Upgrades Protective Life's IFS Rating to 'A+'; Outlook NegativeFitch Ratings has upgraded the Insurer Financial Strength (IFS) ratings of Protective Life Corporation's (PL) primary life insurance subsidiaries to 'A+'. The Rating Outlook on the IFS rating is Negative. Fitch has also affirmed PL's Issuer Default Rating (IDR) at 'A-' and senior debt ratings at 'BBB+'. The Rating Outlook on the IDR is Stable. A full ratings list follows at the end of this release. KEY RATING DRIVERS PL's IFS ratings were upgraded and the outlook revised to Negative to be aligned with the ratings of its parent, Dai-ichi Life Insurance Company, Ltd. (Dai-ichi Life: 'A+' IFS/Outlook Negative), based on Fitch's criteria. Fitch's upgrade of Dai-ichi Life's IFS rating reflects global diversification above the threshold at which it may be rated one-notch above the Japan sovereign. Dai-ichi Life is the second-largest life insurance company in Japan and generates more than 20% of its premiums from outside Japan. The Negative Outlook reflects Dai-ichi Life's exposure to Japan sovereign risk. Fitch views PL's standalone credit profile as in line with an 'A' IFS rating, reflecting the company's strong operating profile, consistent financial performance, solid debt service capability and relatively low investment risk. The ratings also reflect strong balance sheet fundamentals based on PL's solid risk-based capitalization and above-average total leverage driven by reserve funding arrangements. RATING SENSITIVITIES Protective Life's IFS ratings will be downgraded if Dai-ichi Life's ratings are downgraded based on a negative rating action in Japan or deterioration in its credit profile. PL's holding company ratings would likely be affirmed if Dai-ichi Life's ratings are downgraded based on a negative rating action in Japan. Given that Dai-ichi Life's ratings have a Negative Outlook, an upgrade of PL is unlikely in the near term. Fitch has upgraded the following ratings with a Negative Outlook: Protective Life Insurance Company Protective Life and Annuity Insurance Company West Coast Life Insurance Company MONY Life Insurance Co. --IFS to 'A+' from 'A'. Fitch has affirmed the following ratings with a Stable Outlook: Protective Life Corporation --IDR at 'A-'; --$150 million of .40% senior notes due 2018 at 'BBB+'; --$400 million of 7.38% senior notes due 2019 at 'BBB+'; --$300 million of 8.45% senior notes due 2039 at 'BBB+'; --$288 million of 6.25% subordinated debt due 2042 at 'BBB-'; --$150 million of 6.00% subordinated debt due 2042 at 'BBB-'. Additional information is available on www.fitchratings.com. Applicable Criteria Insurance Rating Methodology (pub. 17 May 2016) https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=881564 Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1008041 Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1008041 Endorsement Policy https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. View source version on businesswire.com: http://www.businesswire.com/news/home/20160627005945/en/ |
