TEXT-Fitch expects to rate Great-West Lifeco shares 'BBB+'

Tue Oct 9, 2012 3:32pm EDT

Oct 9 - Fitch Ratings expects to assign the following rating to Great-West
Lifeco's (TSE:GWO) planned issuance:

--C$150 million Series R, non-cumulative first preferred shares 'BBB+'.

GWO has offered the underwriters the option to buy an additional two million
shares. If the option is fully exercised, the gross proceeds will be C$200
million. The offering is expected to close Oct. 11, 2012.

The new share's rating will be equivalent to the ratings on GWO's existing
preferred shares. Under Fitch's hybrid methodology, GWO's non-cumulative
preferred shares receive 100% equity credit. Fitch anticipates that the net
proceeds will be used for general corporate purposes and to augment the
company's current liquidity position.

At June 30, 2012 GWO's financial leverage was 22% and GAAP earnings-based
interest and preferred dividend coverage was approximately 6 times (x). Pro
forma financial leverage, including the C$200 million issuance of Series Q
non-cumulative preferred shares in July 2012, remains unchanged at approximately
22%.

On June 25, 2012, Fitch affirmed all of its ratings for GWO and GWO's
subsidiaries with a Stable Outlook.

Fitch currently rates the GWO entities as follows:

Great-West Lifeco, Inc.
--Long-term IDR 'A+';
--6.14% senior debentures due March 21, 2018 'A';
--4.65% senior debentures due Aug. 13, 2020 'A';
--6.74% senior debentures due Nov. 24, 2031 'A';
--6.67% senior debentures due March 21, 2033 'A';
--5.998% senior debentures due Nov. 16, 2039 'A';
--Series F, 5.9% non-cumulative first preferred shares 'BBB+';
--Series G, 5.2% non-cumulative first preferred shares 'BBB+';
--Series H, 4.85% non-cumulative first preferred shares'BBB+';
--Series I, 4.5% non-cumulative first preferred shares 'BBB+';
--Series J, 6% non-cumulative first preferred shares 'BBB+';
--Series L, 5.65% non-cumulative first preferred shares 'BBB+';
--Series M, 5.80% non-cumulative first preferred shares 'BBB+';
--Series N, 3.65% non-cumulative first preferred shares 'BBB+';
--Series P, 5.4% non-cumulative first preferred shares 'BBB+';
--Series Q, 5% non-cumulative first preferred shares 'BBB+.'

GWL&A Financial Corp.
--Long-term IDR 'A+'.

Canada Life Financial Corporation
--Long-term IDR 'A+'.

Great-West Life Assurance Company
--IFS 'AA';
--Long-term IDR 'AA-'.

Canada Life Assurance Company
--IFS 'AA';
--Long-term IDR 'AA-';
--6.4% subordinated debentures due Dec. 11, 2028 'A+'.

Great-West Life and Annuity Insurance Company
--IFS 'AA';
--Short-term IDR 'F1+';
--Commercial paper 'F1+'.

London Life Insurance Company;
First Great-West Life & Annuity Insurance Company
--IFS 'AA'.

Great-West Lifeco Finance (Delaware) LP
--5.691% subordinated debentures due 2067 'BBB+';
--7.127% subordinated debentures due 2068 'BBB+'.

Great-West Life & Annuity Insurance Capital, LP
--6.625% deferrable debentures due Nov. 15, 2034 'BBB+'.

Great-West Life & Annuity Insurance Capital, LP II
--7.153% subordinated debentures due 2046 'BBB+'.

Great-West Life Capital Trust
--Series A, 5.995% senior debentures due Dec. 31, 2052 'A'.

Canada Life Capital Trust
--Series B, 7.529% senior debentures due June 30, 2052 'A'.
Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Insurance Rating Methodology' (Sept. 19, 2012).

Applicable Criteria and Related Research:
Insurance Rating Methodology
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