Moody’s cuts Ohio National to junk

Moody’s Investors Service said it downgraded the senior unsecured debt rating of Ohio National Financial Services, Inc. to Ba1 from Baa3 and the insurance financial strength of its core subsidiaries. Additionally, the agency changed the outlook to stable from negative.

The downgrade of Ohio National and its core life insurance subsidiaries reflects its weakened market position, and challenges to improve organic net capital generation at the company, Moody’s said.

“The return to a stable outlook reflects the recently completed acquisition of Ohio National by Constellation, a nascent organization focused on growing and acquiring life and property & casualty lines of business with the financial backing by Caisse de depot et placement du Quebec (CDPQ, Aaa stable) and Ontario Teachers' Pension Plan Board (OTPP, Aa1 stable), management continuity, with the advancement of its strategy to grow its protection oriented business, and prudently reenter the retirement market by adding additional distribution channels,” the agency said in a press release.

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