Fitch Downgrades and Withdraws Ratings on Sun Life Financial's Former U.S. Life Subsidiaries

CHICAGO--()--Fitch Ratings has downgraded the Insurer Financial Strength (IFS) ratings of Sun Life Assurance Company (U.S.) and its subsidiary, Sun Life Insurance and Annuity Company of New York, collectively referred to as Sun Life (US), to 'BBB' from 'A-'. The ratings remain on Rating Watch Negative. At the same time, Fitch has withdrawn the ratings assigned to Sun Life (US). A complete list of ratings follows at the end of this release.

KEY RATING DRIVERS

Today's rating action follows completion of the sale of the two Sun Life Financial Inc. (TSE, NYSE: SLF) insurance companies to Delaware Life Holdings LLC (Delaware Life), a company owned by certain shareholders of Guggenheim Partners. The rating opinion is based on publically available information only and the downgrade decision reflects Fitch's view of the standalone ratings for SLAC and SLIACNY, after the loss of SLF support.

The Rating Watch status reflects uncertainty over the impact of the new ownership structure on Sun Life (US)'s standalone credit profile.

Fitch has withdrawn the ratings as Sun Life (US) has chosen not to participate in the rating process. Therefore, Fitch will not have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Sun Life (US).

Fitch has downgraded, maintained on Rating Watch Negative, and withdrawn the following ratings:

--Sun Life Assurance Co. of Canada (U.S.)

--Sun Life Insurance & Annuity Co. of NY

--IFS ratings to 'BBB' from 'A-'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Insurance Rating Methodology'(Aug. 19, 2013).

Applicable Criteria and Related Research:

Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715468

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=800095

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Contacts

Fitch Ratings
Primary Analyst:
Bruce E. Cox, +1 312-606-2316
Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst:
Tana M. Higman, +1 312-368-3122
Director
or
Committee Chairperson:
Julie A. Burke, CPA, CFA, +1 312-368-3158
Managing Director
or
Brian Bertsch, +1 212-908-0549
New York, Media Relations
brian.bertsch@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst:
Bruce E. Cox, +1 312-606-2316
Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst:
Tana M. Higman, +1 312-368-3122
Director
or
Committee Chairperson:
Julie A. Burke, CPA, CFA, +1 312-368-3158
Managing Director
or
Brian Bertsch, +1 212-908-0549
New York, Media Relations
brian.bertsch@fitchratings.com