Phoenix Group Holdings Credit Ratings Upgrade (0575M)
July 25 2017 - 10:25AM
UK Regulatory
TIDMPHNX
RNS Number : 0575M
Phoenix Group Holdings
25 July 2017
Phoenix Group Holdings announces credit rating upgrades by Fitch
Ratings
Phoenix Group Holdings ("Phoenix" and, together with its
subsidiaries, the "Group") is pleased to announce that the Insurer
Financial Strength ("IFS") ratings of two of its principal
operating life companies, Phoenix Life Limited and Phoenix Life
Assurance Limited, have been upgraded to "A+" (strong) with a
stable outlook by Fitch Ratings.
These upgrades reflect Fitch's view of Phoenix's very strong
capitalisation and improved leverage, as well as the progress in
integrating the AXA Wealth and Abbey Life acquisitions. The rating
upgrades also result in a 25bps reduction in the interest margin of
the Group's Revolving Credit Facility ('RCF') to 110bps(2) ,
effective from 28 July 2017.
The ratings actions are as follows:
Rating Type Entities Upgraded to From
--------------------- ---------------------------------------------------- ----------- ----
IFS ratings Phoenix Life Limited, Phoenix Life Assurance Limited A+ A
--------------------- ---------------------------------------------------- ----------- ----
Issuer Default Rating Phoenix Group Holdings A A-
--------------------- ---------------------------------------------------- ----------- ----
Issuer Nominal Instrument Coupon Maturity Upgraded to From
---------------------- ---------- ------------------------- ------ ---------- ----------- ----
Phoenix Group Holdings GBP122m(3) Senior notes 5.750% 07/07/2021 A- BBB+
---------------------- ---------- ------------------------- ------ ---------- ----------- ----
Phoenix Group Holdings GBP450m Tier 3 Subordinated notes 4.125% 20/07/2022 BBB BBB-
---------------------- ---------- ------------------------- ------ ---------- ----------- ----
Phoenix Group Holdings GBP428m Tier 2 Subordinated notes 6.625% 18/12/2025 BBB BBB-
---------------------- ---------- ------------------------- ------ ---------- ----------- ----
Phoenix Group Holdings US$500m Tier 2 Subordinated notes 5.375% 06/07/2027 BBB BBB-
---------------------- ---------- ------------------------- ------ ---------- ----------- ----
The credit rating upgrades from Fitch Ratings are a positive
outcome for the Group and will enhance Phoenix's position in the
debt capital markets.
Enquiries
Investors/analysts:
Sam Perowne, Head of Investor Relations, Phoenix Group
+44 (0)20 3735 0021
Debt investors:
Rashmin Shah, Group Treasurer, Phoenix Group
+44 (0) 20 3735 0059
Media:
Sundeep Tucker, Maitland
+ 44 (0) 20 7379 5151
Shellie Wells, Head of Corporate Communications, Phoenix
Group
+44 (0)20 3735 0922
Notes
1. Phoenix Group is the UK's largest specialist consolidator of
closed life funds with c.6.1 million customers and GBP76 billion of
life company assets as at 31 December 2016.
2. The current drawn amount on the RCF is GBP166 million.
Following the upgrade, the RCF will have an interest margin of
110bps. In addition, a utilisation fee of 10bps is payable if the
RCF is utilised by up to 33% of the GBP900m facility, 20bps is
payable if the RCF is utilised by between 33% and 67% of the GBP900
million facility, and 40bps if utilised by more than 67% of the
GBP900 million facility. Commitment fees of 35% of margin are
payable on undrawn amounts.
3. Originally GBP300m.
4. This announcement in relation to Phoenix Group Holdings and
its subsidiaries (the 'Group') contains, and we may make other
statements (verbal or otherwise) containing, forward-looking
statements and other financial and/or statistical data about the
Group's current plans, goals and expectations relating to future
financial conditions, performance, results, strategy and/or
objectives.
Statements containing the words: 'believes', 'intends', 'will',
'may', 'should', 'expects', 'plans', 'aims', 'seeks', 'targets',
'continues' and 'anticipates' or other words of similar meaning are
forward-looking. Such forward-looking statements and other
financial and/or statistical data involve risk and uncertainty
because they relate to future events and circumstances that are
beyond the Group's control. For example, certain insurance risk
disclosures are dependent on the Group's choices about assumptions
and models, which by their nature are estimates. As such, actual
future gains and losses could differ materially from those that the
Group has estimated.
Other factors which could cause actual results to differ
materially from those estimated by forward-looking statements
include but are not limited to: domestic and global economic and
business conditions; asset prices; market related risks such as
fluctuations in interest rates and exchange rates, the potential
for a sustained low-interest rate environment, and the performance
of financial markets generally; the policies and actions of
governmental and/or regulatory authorities, including, for example,
new government initiatives related to the financial crisis and the
effect of the European Union's "Solvency II" requirements on the
Group's capital maintenance requirements; the impact of inflation
and deflation; the political, legal and economic effects of the
UK's vote to leave the European Union; market competition; changes
in assumptions in pricing and reserving for insurance business
(particularly with regard to mortality and morbidity trends, gender
pricing and lapse rates); the timing, impact and other
uncertainties of future acquisitions or combinations within
relevant industries; risks associated with arrangements with third
parties; inability of reinsurers to meet obligations or
unavailability of reinsurance coverage; the impact of changes in
capital, solvency or accounting standards, and tax and other
legislation and regulations in the jurisdictions in which members
of the Group operate.
As a result, the Group's actual future financial condition,
performance and results may differ materially from the plans, goals
and expectations set out in the forward-looking statements and
other financial and/or statistical data within this announcement.
The Group undertakes no obligation to update any of the
forward-looking statements or data contained within this
announcement or any other forward-looking statements or data it may
make or publish. Nothing in this announcement should be construed
as a profit forecast or estimate.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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