Reuters logo
Fitch Maintains Rating Watch Negative on Phoenix Companies, Inc.
May 22, 2013 / 7:58 PM / 4 years ago

Fitch Maintains Rating Watch Negative on Phoenix Companies, Inc.

(The following statement was released by the rating agency) NEW YORK, May 22 (Fitch) Fitch Ratings has maintained its Rating Watch Negative on the 'B' holding company Issuer Default Rating of Phoenix Companies, Inc.'s (PNX) and the 'BB+' Insurer Financial Strength (IFS) ratings of PNX's primary insurance operating subsidiaries following the company's announcement that it has won approval from bondholders of a further delay of its GAAP filings until Dec. 31, 2013. KEY RATING DRIVERS Today's announcement reduces the risk of imminent default on its $253 million of 7.45% notes outstanding. This information does not, however, provide assurances of timely and accurate filing on an ongoing basis in the future. As previously announced, PNX continues to work on restating audited and interim GAAP statements going back to 2009, with reported material weaknesses in several areas anticipated. PNX expects to provide an update on the restatement process by June 30, 2013. 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. RATING SENSITIVITIES The filing delays are tied to restatements of previously filed audited and interim GAAP financials. Fitch anticipates that the Dec. 31, 2013 filing deadline builds in some cushion. Fitch could downgrade PNX's ratings if the June 30, 2013 update does not provide some clarity on the ultimate filing date and expected financial impact of restatements. If the final restated numbers are not materially worse than the previously reported numbers, Fitch could remove the Rating Watch and affirm the ratings. Results that are materially worse could trigger a downgrade. Fitch has maintained the following ratings on Rating Watch Negative: 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'. Applicable Criteria and Related Research: --'Insurance Rating Methodology' (January 11, 2013) Applicable Criteria and Related Research: Insurance Rating Methodology — Amended here Additional Disclosure Solicitation Status 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.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below