Canada Life Financial Corp.'s U.S. Subs Off Watch; Outlook Negative.Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 16, 2003 Canada Life Financial Canada Life Financial Corporation TSX: CL is a Canadian company that offers life, health, and disability insurance for groups and individuals. Founded in 1847, it was acquired by The Great-West Life Assurance Company in 2003, after rejecting a hostile takeover bid by Corp.'s U.S. Subs Off Watch; Outlook Negative Rationale On Oct. 16, 2003, Standard & Poor's Ratings Services affirmed the 'AA' financial strength ratings on Canada Life Insurance Co. of America (CLICA CLICA Connected Low Interference Channel Assignment ) and Canada Life Insurance Co. of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (CLNY). At the same time, Standard & Poor's removed the ratings from CreditWatch, where they were placed Dec. 9, 2002. The outlook is negative. The ratings on parent company Canada Life Financial Corp. (GWO GWO Good Working Order GWO Google Website Optimizer GWO Ginninderra Wind Orchestra (Canberra, Australia) GWO General Watch Officer GWO Gravel Watch Ontario GWO Gateway Wrestling Organization :TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension ) and its other subsidiaries also were affirmed. (See list below.) The ratings actions reflect the provision of guarantees from The Canada Life Assurance Co. to its two U.S. subsidiaries. The counterparty credit rating on CLICA has been withdrawn, now that it is guaranteed by The Canada Life Assurance Co. Standard & Poor's views The Canada Life Assurance Co.'s Canadian operations as core to Great-West Lifeco The Great-West Life Assurance Company (known more commonly as Great-West Life) is a life and health insurance company. Its headquarters is located in Winnipeg, Manitoba, Canada and its CEO is Raymond L. McFeetors. Inc. and expects these operations to benefit from the leading business position and scale that the combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
Outlook The negative outlook reflects the undercapitalization Undercapitalization refers to any situation where a business owner cannot acquire the funds they need. Usually, this refers to a business that cannot afford current operational expenses due to a lack of capital, which can trigger bankruptcy. (as measured by Standard & Poor's Canadian capital Noun 1. Canadian capital - the capital of Canada (located in southeastern Ontario across the Ottawa river from Quebec) capital of Canada, Ottawa Ontario - a prosperous and industrialized province in central Canada adequacy ratio) of Canada Life Financial Corp. post transaction, due to the significant amount of capital that was dividended up to its new parent, in part to finance the acquisition, and the integration risk that is associated with assimilating Canada Life's three primary business units in Canada, the U.S., and Europe into Great-West Lifeco simultaneously. Although Standard & Poor's clearly understands the strategic rationale for the purchase of Canada Life's Canadian operations, there is still a degree of uncertainty as it relates to Great-West Lifeco's strategic commitment to the non-Canadian operations in Europe and the U.S. and what these operations will look like after closing. Ratings Affirmed To From Canada Life Insurance Co. of America Counterparty credit rating Withdrawn AA/Watch Neg/-- Financial strength rating(a) AA/Negative AA/Watch Neg (a)Guaranteed by The Canada Life Assurance Co. Canada Life Insurance Co. of New York Financial strength rating(a) AA/Negative AA/Watch Neg (a)Guaranteed by The Canada Life Assurance Co. Canada Life Financial Corp. Counterparty credit rating A/Negative/-- Prelim. preferred stock Canadian scale P-2(High) Global scale BBB+ Canada Life Assurance Co. (The) Counterparty credit rating AA/Negative/-- Financial strength rating AA/Negative Subordinated debt rating A+ Prelim. preferred stock Canadian scale P-1(Low) Global scale A Canada Life Assurance Co. (US Branch) Counterparty credit rating AA/Negative/-- Financial strength rating AA/Negative Canada Life Capital Trust Canada Life Capital Securities series A and B (CLiCS) Preferred stock Canadian scale P-1(Low) Global scale A Canada Life Capital Corp. Inc. Prelim. preferred stock(b) Canadian scale P-2(High) Global scale BBB+ (b)Guaranteed by Canada Life Financial Corp. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar A set of buttons or graphic images typically in a row or column used as a central point that link you to major topic sections on a Web site. If the navigation bar is a single graphic image with multiple selections, it is known as an imagemap. See imagemap. , select Credit Ratings Actions. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion