S&P rates Pacific Life notes A

Standard & Poor's said it assigned an A rating to Pacific Life Insurance Co.'s $1 billion surplus notes due 2039.

The AA- counterparty credit ratings on Pacific Life and Pacific Life & Annuity Co. and the A- counterparty credit rating on Pacific LifeCorp were affirmed.

The outlook on all of these companies remains negative.

Proceeds will be used for general corporate purposes.

"We view Pacific Life's surplus note issuance favorably because it will bolster the insurance operations' capital position," S&P analyst Jeff Watson said in a statement.

"It will also alleviate some of the capital pressure arising from elevated investment losses and higher variable annuity reserve requirements." Following the surplus note issuance, we view the capital position as adequate for the current rating.

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