Voya 2013 Annual Report Download - page 177

A.M. Best’s short-term credit rating is an opinion to the ability of the rated entity to meet its senior financial
commitments on obligations maturing in generally less than one year.
(2) Fitch’s financial strength ratings provide an assessment of the financial strength of an insurance
organization. The IFS Rating is assigned to the insurance company’s policyholder obligations, including
assumed reinsurance obligations and contract holder obligations, such as guaranteed investment contracts.
Within long-term and short-term ratings, a “+” or a “ⳮ” may be appended to a rating to denote relative
status within major rating categories.
(3) Moody’s financial strength ratings are opinions of the ability of insurance companies to repay punctually
senior policyholder claims and obligations. Moody’s appends numerical modifiers 1, 2, and 3 to each
generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the
higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3
indicates a ranking in the lower end of that generic rating category. Moody’s long-term credit ratings are
opinions of the relative credit risk of fixed-income obligations with an original maturity of one year or more.
They address the possibility that a financial obligation will not be honored as promised. Moody’s short-term
ratings are opinions of the ability of issuers to honor short-term financial obligations.
(4) S&P’s insurer financial strength rating is a forward-looking opinion about the financial security
characteristics of an insurance organization with respect to its ability to pay under its insurance policies and
contracts in accordance with their terms. A “+” or “ⳮ” indicates relative strength within a category. An
S&P credit rating is an assessment of default risk, but may incorporate an assessment of relative seniority or
ultimate recovery in the event of default. Short-term issuer credit ratings reflect the obligor’s
creditworthiness over a short-term time horizon.
Our ratings by A.M. Best, Fitch, Moody’s and S&P reflect a broader view of how the financial services
industry is being challenged by the current economic environment, but also are based on the rating agencies’
specific views of our financial strength. In making their ratings decisions, the agencies consider past and
expected future capital and earnings, asset quality and risk, profitability and risk of existing liabilities and current
products, market share and product distribution capabilities and direct or implied support from parent companies,
including implications of the 2009 Restructuring Plan and the 2012 Amended Restructuring Plan, among other
factors.
Rating agencies use an “outlook” statement for both industry sectors and individual companies. For an
industry sector, a stable outlook generally implies that over the next 12 to 18 months the rating agency expects
ratings to remain unchanged among companies in the sector. For a particular company, an outlook generally
indicates a medium- or long-term trend in credit fundamentals, which if continued, may lead to a rating change.
Ratings actions affirmation and outlook changes by A.M. Best, Fitch, Moody’s and S&P from
December 31, 2012 through December 31, 2013 and subsequently through the date of this Annual Report on
Form 10-K are as follows:
• On March 6, 2014, Fitch affirmed the ratings of ING U.S., Inc. and its subsidiaries and revised the
rating outlook to Positive from Stable. The revision in the outlook reflects the significant improvement
in ING U.S., Inc.’s balance sheet strength and improved debt servicing capacity.
• On October 17, 2013, Moody’s withdrew the Prime-2 program rating for commercial paper issuances
of ING U.S., Inc. ING U.S., Inc. formally terminated its commercial paper program effective
October 3, 2013.
• On October 16, 2013, Fitch Ratings withdrew the F2 Short-term rating for commercial paper issuances
of ING U.S., Inc. ING U.S., Inc. formally terminated its commercial paper program effective
October 3, 2013.
• On July 26, 2013, ING U.S., Inc. issued $400.0 million of 2043 Notes which were assigned a BBB-
rating from S&P, a bbb rating from A.M. Best, a Baa3 rating from Moody’s and a BBB- rating from
Fitch. All ratings were assigned with a Stable outlook.
• On July 8, 2013, Fitch affirmed the ratings of ING U.S., Inc. and its subsidiaries.
• On June 14, 2013, A.M. Best affirmed the ratings of ING U.S., Inc. and its subsidiaries.
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