Fitch lowers Lincoln National

Fitch Ratings said it downgraded Lincoln National Corp.'s issuer default rating to BBB+ from A, senior debt to BBB from A-, junior subordinated debt to BB+ from BBB+ and commercial paper to F2 from F1.

The outlook is negative.

The downgrade reflects reduced financial flexibility at the holding company given cash recently paid out to fund debt maturities, relatively large commercial paper balances and historic reliance on inter-company borrowings, according to the agency.

Ratings are supported by the company's longstanding strong competitive position in the life insurance and annuity market, strong and diverse distribution network, strong management team and historically solid operating performance, the agency said.

These strengths are tempered somewhat by the current weak economic and capital market conditions, as well as strong competition in the life insurance and asset accumulation sectors, Fitch said.

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