S&P upgrades Voya

S&P said it raised the long-term issuer credit rating on Voya Financial Inc. and Voya Holdings Inc. to BBB+ from BBB.

The agency also raised the issuer credit and financial strength ratings on Voya Retirement Insurance and Annuity Co., Midwestern United Life Insurance Co., Reliastar Life Insurance Co., Reliastar Life Insurance Co. of New York and Security Life of Denver Insurance Co. to A+ from A.

The outlook is stable.

The upgrades reflect a view that VOYA's operating performance has stabilized with a significant reduction in market and insurance risk from the mid-2018 disposition of its closed block variable annuity business, S&P said.

The group's credit profile was previously constrained by the industry's inherent volatility, the agency said.

S&P said it assigned a BBB- rating to Voya's proposed issuance of up to $300 million, non-call 10-year fixed-rate reset non-cumulative preferred stock, series B.

The proceeds will be used to repay about $100 million of its 5.5% senior notes due 2022 and for general corporate purposes, the agency said.

The preferred stock issue was rated two notches lower than the BBB+ long-term issuer credit and senior debt ratings on Voya, reflecting the subordination of the issue and the optional deferability of the debt, S&P said.

The stable outlook reflects an expectation that Voya will maintain its top-five market position in its core markets and maintain improved balance-sheet strength, capital adequacy and strong liquidity position, the agency said.

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