Moody's cuts Lincoln National

Moody's Investors Service said it downgraded Lincoln National Corp.'s senior debt rating to Baa2 from Baa1 and kept the rating on review for further downgrade.

The downgrade reflects expectations for continuing depressed earnings and further investment losses, particularly under stress scenarios, which will constrain already weakened holding company liquidity and financial flexibility, as well as its operating companies' capitalization, according to the agency.

"The impact of the equity markets and higher investment losses on regulatory earnings and capital will constrain the company's ability to take such additional dividends, thereby weakening the company's financial flexibility," Moody's vice president said in a statement.

An offsetting consideration is the company's $1 billion of capacity available under its committed bank credit facilities, which have no material adverse-change language, the agency noted.

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