S&P Rates GWL&A Financial's Counterparty Credit 'A+'.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/27/98 -- Standard & Poor's today assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. its single-'A'-plus counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit rating to GWL&A Financial Inc. The outlook is stable. GWL&A Financial is the U.S.-based holding company of Great-West Life Assurance The Great-West Life Insurance Company (known more commonly 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. of Winnipeg, Manitoba. Standard & Poor's also assigned its single-'A' rating to Great-West Life & Annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. Insurance Capital I's pending issuance of US$150 million capital securities. These capital securities were filed for SEC review on Sept. 28, 1998. Great - West Life & Annuity Insurance Capital I is a trust subsidiary of GWL&A Financial. At the same time, Standard & Poor's affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its ratings on Great West Life Assurance Co. and related entities (see list below). The capital securities being issued by Great-West Life Annuity LIFE ANNUITY. An annual income to be paid during the continuance of a particular life. Insurance Capital I are guaranteed by GWL&A Financial on a subordinate basis to any current or future senior debt of the company. Standard & Poor's expects prospective consolidated GWL&A Financial debt leverage to remain at or below 25%. Proceeds from the sale of the capital securities will be used to purchase junior subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before from GWL&A Financial. These proceeds are expected to be contributed entirely as regulatory capital to Colorado-based Great-West Life & Annuity for general corporate purposes. Great-West Life & Annuity is the principal U.S. operating insurance company for Great-West Life Assurance Co. with more than US$13 billion in assets as of June 30, 1998. OUTLOOK: STABLE The outlook reflects the continued strong balance sheet and very strong operating performance of Great-West Life Assurance and its primary U.S. operating company operating company A business that engages in transactions with outsiders. , Great-West Life & Annuity, Standard & Poor's said. -- CreditWire -0-
OUTSTANDING RATINGS AFFIRMED
Rating
Great-West Life Assurance Co.
Counterparty credit rating AA+
Financial strength AA+
Commercial paper A-1+
Great-West Life & Annuity Insurance Co. (U.S.)
Counterparty credit ratings AA+/A-1+
Financial strength AA+
Commercial paper A-1+
First Great-West Life & Annuity Insurance Co.
Counterparty credit rating AA
Financial strength rating AA
London Insurance Group Inc.
Counterparty credit rating AA
Senior unsecured debt AA
London Life Insurance Co.
Counterparty credit rating AA+
Financial strength AA+
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