S&P affirms Phoenix Cos.

Standard & Poor's said it affirmed the BBB- counterparty credit rating on Phoenix Cos. Inc. and affirmed its A- counterparty credit ratings on its operating subsidiaries, including Phoenix Life Insurance Co., PHL Variable Insurance Co. and AGL Life Assurance Co.

The outlook remains stable.

According to the agency, the affirmation follows Phoenix Co.'s planned spinoff of its asset management business, which is expected to occur in the third quarter and would result in current Phoenix shareholders receiving stock in the newly formed asset management company.

S&P said it expects the disposition to allow Phoenix to focus on its core life insurance and annuity businesses and that the impact on financial leverage and fixed-charge coverage to be neutral, as the maturing and paying down of $153 million of debt in February should help offset the loss of dividends from the asset management company.

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