Fitch affirms Lincoln

Fitch Ratings said it affirmed Lincoln National Corp. long-term issuer default rating at A-, short-term issuer default rating at F2 and commercial paper at F2.

Fitch affirmed the 6.2% senior notes due Dec. 15, 2011, 5.65% senior notes due Aug. 27, 2012, 4.75% senior notes due Jan. 27, 2014, 4.75% senior notes due Feb. 15, 2014, 4.30% senior notes due June. 15, 2015, 7% senior notes due March 15, 2018, 8.75% senior notes due July 1, 2019, 6.25% senior notes due Feb. 15, 2020, 4.85% senior notes due June 24, 2021, 6.15% senior notes due April 7, 2036, 6.3% senior notes due Oct. 9, 2037 and 7% senior notes due June 15, 2040 at BBB+.

Fitch also affirmed the company's 7% junior subordinated debentures due May 17, 2066 and 6.05% junior subordinated debentures due April 20, 2067 at BBB-.

The outlook is stable.

The rating actions follow Fitch's periodic review of Lincoln National and reflect the company's improving overall operating performance, good risk-adjusted capitalization, strong competitive position and diverse distribution network, and capable management team, the agency said.

The company's ratings also reflect the significant exposure of its earnings to the performance of equity markets, above average financial leverage and longer-term issues around funding the growth in reserves associated with secondary guarantees on universal life policies, the agency added.

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