A.M. Best Assigns Indicative Ratings to Sun Life Financial Inc.`s Shelf Registration and Assigns Debt Rating to Preferred Shares Offering

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has assigned indicative ratings of "a" to senior unsecured debt,
"a-" to subordinated debt and "bbb+" to preferred stock of CAD 5 billion shelf
registration recently filed with the Canadian Securities Commissionby Sun Life
Financial Inc. (Sun Life) (Toronto, Ontario) [NYSE/TSX: SLF]. Concurrently, A.M.
Best has assigned a debt rating of "bbb+" to the issuance of CAD 250 million
(which includes the CAD 50 million green shoe option) 6.00% fixed rate Class A
non-cumulative five-year rate reset preferred shares series 6R, due 2014 as a
draw down from the shelf. The outlook assigned to all ratings is stable. All
existing Sun Life ratings are unchanged.

Effective June 30, 2014 and every five years thereafter, the dividend rate on
the preferred shares will reset at a rate equal to the five-year Government of
Canada bond yield plus 3.79%. At the same time, holders may elect to convert
their series 6R shares into an equal number of Class A non-cumulative floating
rate preferred shares series 7QR (series 7QR shares) and on June 30 every fifth
year thereafter. Holders of the series 7QR shares will be entitled to receive
non-cumulative preferential floating rate quarterly dividends equal to the then
three-month Government of Canada Treasury Bill yield plus 3.79%. All conversions
are subject to board approval.

The proceeds from the preferred shares are expected to be used for general
corporate purposes, thereby bolstering Sun Life`s liquidity position. Sun Life`s
financial leverage and interest coverage remain within A.M. Best`s expectations
for its current ratings.

The ratings of Sun Life reflect its diversified revenue stream from multiple
regions, profitable operations in Canada, favorable risk-adjusted capitalization
and well-developed and fully integrated risk management framework. The company`s
first quarter 2009 regulatory capital ratio in Canada is considered strong. Sun
Life is a Canadian-based holding company with a top three market position in the
Canadian insurance market. Sun Life also maintains an expanding wealth
management and life insurance operation in Asia.

A.M. Best expects Sun Life to continue facing challenges due to stresses in the
global macroeconomic environment, especially in its U.S. operations. The
prolonged weakness in the equity markets through first quarter 2009 has
continued to pressure both Sun Life`s insurance operations, primarily in the
United States and its asset management operation, Mclean Budden and MFS
Investment Management.

For additional information on the company`s current ratings, please see A.M.
Best`s press release of February 27, 2009.

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors, which may have been considered, can be
found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. Best Company
Analysts
Marc Steinberg, 908-439-2200, ext. 5225
marc.steinberg@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
william.pargeans@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009