Fitch gives Western and Southern notes A+

Fitch Ratings said it assigned an A+ expected rating to the proposed $500 million of surplus notes due 2069 issued by Western and Southern Life Insurance Co.

The issuance will be used to replenish the company's enterprise capital position, following its recent acquisition of Gerber Life Insurance Co.

The outlook is stable.

At the same time, Fitch also published an AA- long-term issuer default rating to Western and Southern Life Insurance.

The agency said the A+ expected rating assigned to the proposed surplus note issuance reflects standard notching from the company's AA insurer financial strength ratings and considers subordination of the surplus notes relative to policyholder obligations.

The notes are rated one notch below the company's issuer default rating of AA-, reflecting one notch for Fitch's assumption of below average recovery prospects in the event of default and zero notches tied to its minimal non-performance risk, the agency added.

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