Fitch affirms Great-West

Fitch Ratings said it affirmed Great-West Lifeco, Inc.'s long-term issuer default rating at A+, senior debentures at A and noncumulative first preferred shares at BBB+. The outlook is stable.

The agency said the ratings rationale is based on the company's consistently strong and stable core insurance earnings, strong competitive position in the Canadian market, conservative investment profile and overall actuarial liability profile, which is not heavily exposed to the equity markets.

Offsetting these positives are the company's relatively high use of financial leverage and the ongoing underperformance of Putnam Investments, which has strained overall earnings levels and has caused fixed-charge coverage to remain at depressed levels for some time, Fitch said.

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