Fitch Rates Lincoln National Corp. $1B Notes 'A'.CHICAGO -- Fitch has assigned an 'A' rating to Lincoln National Corporation's (LNC LNC Legal Nurse Consultant LNC Libertarian National Committee LNC Low Noise Converter LNC Lloyd Noble Center (University of Oklahoma, Norman campus) LNC Local Node Clock LNC Chief Legalman (Naval Rating) ) issuance of $1 billion of senior unsecured notes. The notes were issued in two tranches Tranches A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. "Tranche" is the French word for "slice". : $500 million of 3-year floating-rate notes Floating-rate note (FRN) Note whose interest payment varies with short-term interest rates. floating-rate note An unsecured debt issue with an interest rate that is reset at specified intervals (usually every six months) according to a ; $500 million of 30-year 6.15% fixed-rate notes. The Rating Outlook is Stable. The notes are being issued under an existing shelf registration to term out short-term financing used to fund LNC's acquisition of Jefferson Pilot Corp., which was completed on April 3, 2006. LNC's high ratings reflect the company's longstanding strong competitive position in the life insurance industry, solid capitalization, good quality asset portfolio, excellent financial flexibility, and strong operating performance. Factors partially offsetting these positives include challenges that LNC faces with respect to strong competition in the life insurance and asset accumulation sectors (particularly in the affluent market segment that LNC has targeted), the degree to which the company's earnings are leveraged to the equity markets, and integration challenges related to the company's acquisition of Jefferson Pilot. In addition, the rating considers the heightened level of regulatory pressures on participants in the insurance industry. Lincoln National Corp., headquartered in Philadelphia, PA, markets a broad range of insurance and asset accumulation products and financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal primarily to the affluent market segment. On Dec. 31, 2005, the company reported consolidated assets of $125 billion, common equity of $6.4 billion, and $324 billion of individual life insurance in-force. For 2005, LNC reported consolidated net income of $831 million. Fitch rates the following securities 'A' with a Stable Outlook: Lincoln National Corporation Lincoln National Corporation (NYSE: LNC) is a holding company, which operates multiple insurance and investment management businesses through subsidiary companies. LNC was organized under the laws of the state of Indiana in 1968, and maintains its principal executive offices -- $500,000,000 floating-rate notes due April 6, 2009. -- $500,000,000 6.15% notes due April 7, 2036. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, '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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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