Fitch downgrades Pacific LifeCorp

Fitch Ratings said it downgraded Pacific LifeCorp's long-term issuer default rating to A from A+ and its $600 million 6.6% senior notes due 2033 to A- from A.

The agency also downgraded Pacific Life Insurance Co.'s long-term issuer default rating to A+ from AA-, lowered its $150 million 7.9% surplus notes due 2023 to A from A+ and affirmed its short-term issuer default rating and commercial paper at F1+.

The outlook is negative.

The downgrade reflects Fitch's view that Pacific LifeCorp's capital level has declined from its historical high level as a result of 2008's challenging economic environment and the agency's opinion that earnings quality and investment performance during the last calendar year do not align with the prior rating rationale.

The agency said the negative outlook is consistent with its negative outlook on the U.S. life insurance industry.

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