Fitch upgrades Voya

Fitch Ratings said it upgraded Voya Financial, Inc.'s issuer default rating to BBB+ from BBB, senior debt rating to BBB from BBB- and junior subordinated debt rating to BB+ from BB. The outlook is stable.

The agency said the upgrade reflects the significant improvement in Voya's balance sheet strength as well as improved debt-servicing capacity. Holding company financial leverage has declined to 21% at the end of 2014 from 56% at the end of 2010.

Voya's ratings also reflect the large scale and solid business profile in retirement and individual life markets, improved operating performance within its core businesses and conservative investment portfolio, Fitch said.

Fitch's key rating concerns include the challenges related to the run-off of Voya's $43 billion closed-block VA book, particularly in a tail-risk scenario.

On March 9, ING Groep NV fully exited its stake in Voya common stock, the agency noted.

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