Fitch upgrades Phoenix, notes

Fitch Ratings said it upgraded Phoenix Life Ltd.’s and Phoenix Life Assurance Ltd.’s insurer financial strength ratings to A+ (strong) from A.

They are two of the principal operating life companies of Phoenix Group Holdings.

The agency also upgraded Phoenix Group’s long-term issuer default rating to A from A-.

The outlooks are stable.

In addition, Fitch upgraded Phoenix's senior notes to A- from BBB+ and subordinated notes to BBB from BBB-.

Fitch said the upgrade reflects its reassessment of Phoenix's capitalization and leverage to very strong (from strong previously), combined with the group's progress in integrating AXA Wealth Ltd. and Abbey Life Assurance Co. Ltd., both acquired in 2016. This progress, and given Phoenix's track record in successfully integrating large portfolios, means the remaining execution risk is low, in the agency’s view.

The ratings also reflect Phoenix's strong debt service capabilities and financial flexibility, earnings and business profile, Fitch added.

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