Fitch cuts Great-West Lifeco

Fitch Ratings said it downgraded the ratings of Great-West Lifeco by one notch, including the holding company's issuer default rating to A+ from AA- and all outstanding senior debt and hybrid issues to AA from AA+.

The outlook is stable.

The action follows a periodic review of the company's ratings, Fitch said, and is based mainly on 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.

The ratings remain among the highest of Fitch's life insurance ratings. The agency said it views positively the company's consistently strong and stable core insurance earnings performance as it drives and supports the company's financial flexibility and consolidated risk-based capital position.

This performance is reflective of the company's conservative risk appetite, Fitch added.

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