Fitch Withdraws Ratings of Phoenix Companies, Inc.

Fri Jul 26, 2013 11:34am EDT

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(The following statement was released by the rating agency) NEW YORK, July 26 (Fitch) Fitch Ratings has withdrawn the 'B' holding company Issuer Default Rating of Phoenix Companies, Inc. (PNX) and the 'BB+' Insurer Financial Strength (IFS) ratings of PNX's primary insurance operating subsidiaries. The Ratings are being withdrawn without resolving the current Rating Watch Negative. KEY RATING DRIVERS Today's rating action reflects Fitch's view that it lacks sufficient information to maintain the PNX and subsidiary ratings or resolve the Rating Watch Negative status. PNX recently announced that it would not file audited statutory statements for its insurance subsidiaries within the timeframe allowed by their domiciliary states. Furthermore, the company stated 'the 2012 audited statutory financial statements, when completed, could materially and adversely vary from the unaudited 2012 statutory results.' As described in Fitch's May 23, 2013 rating action commentary, 'PNX continues to file financial statements based on statutory accounting principles for its regulated insurance subsidiaries in a timely manner. These filings as well as public disclosures related to holding company cash sources and uses provide Fitch with sufficient information to maintain the ratings despite the absence of GAAP financial statements.' PNX's most recent announcement raises the potential for material restatements of statutory financials as well as GAAP financials. Fitch therefore believes it no longer has sufficient and reliable information to maintain the ratings. Fitch has withdrawn the following ratings: Phoenix Companies, Inc --IDR 'B'. Phoenix Life Insurance Company --IFS 'BB+'; --IDR 'BB'; --$126 million Surplus note 7.15% due Dec. 2034 'B+'. PHL Variable Insurance Company --IFS 'BB+'. Contact: Primary Analyst Cynthia J. Crosson Director +1-212-908-0863 Fitch Ratings, Inc. One State Street Plaza New York, New York 10004 Secondary Analyst Julie A. Burke, CPA, CFA Managing Director +1-312-368-3158 Committee Chairperson James B. Auden, CFA Managing Director +1-312-368-3148 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com. Additional information is available at 'www.fitchratings.com'. The issuer did not participate in the rating process or provide additional information, beyond the issuer's available public disclosure. Applicable Criteria and Related Research: --'Insurance Rating Methodology', January 11, 2013. Applicable Criteria and Related Research: Insurance Rating Methodology — Amended here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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