Voya 2013 Annual Report Download - page 178

• On May 16, 2013, ING U.S., Inc. issued $750.0 million of 2053 Notes which were assigned a BB
junior subordinated rating from S&P, a bb+ rating from A.M. Best, a Ba1(hyb) rating from Moody’s
and a BB rating from Fitch. All ratings were assigned with a stable outlook.
• On May 14, 2013, Moody’s affirmed the ratings of ING U.S., Inc. and its subsidiaries.
• On May 14, 2013, S&P affirmed the ratings of ING U.S., Inc. and its subsidiaries under its revised
insurance criteria.
• On May 6, 2013, following our announcement that we completed our recent IPO, Moody’s commented
that the completion of the IPO is credit positive for ING U.S., Inc.
• On May 2, 2013, S&P stated that ING U.S., Inc.’s announcement that it priced its IPO will not affect
the ratings or outlook on ING U.S., Inc. or any of its rated insurance subsidiaries.
• On February 7, 2013, Fitch assigned a BBB- rating to our $1.0 billion 2018 Notes. On January 7, 2013,
Fitch affirmed the BBB issuer default rating and the BBB- senior debt rating of ING U.S., Inc. as well
as the A- insurer financial strength rating of its operating subsidiaries. Furthermore, Fitch removed all
ratings from Ratings Watch Evolving and assigned a Stable outlook to the ratings.
• On February 7, 2013, A.M. Best assigned a “bbb” debt rating to our $1.0 billion 2018 Notes with a
Stable outlook.
• On February 7, 2013 Moody’s assigned a Baa3 senior debt rating to our $1.0 billion 2018 Notes with a
Stable outlook.
• On February 6, 2013, S&P assigned a BBB- senior unsecured debt rating to our $1.0 billion 2018
Notes.
Potential Impact of a Ratings Downgrade
Our ability to borrow funds and the terms under which we borrow are sensitive to our short- and long-term
issuer credit ratings. A downgrade of either or both of these credit ratings could increase our cost of borrowing.
Additionally, a downgrade of either or both of these credit ratings could decrease the total amount of new debt
that we are able to issue in the future or increase the costs associated with an issuance.
Certain of our credit facility agreements contain provisions that are linked to the credit or financial strength
ratings of certain legal entities, including NN Group (as successor to our former indirect parent ING V). If
financial strength ratings were downgraded in the future, these provisions might be triggered and counterparties
to the credit facility agreements could demand collateralization which could negatively impact overall liquidity.
Based on the amount of credit outstanding as of December 31, 2013, a one-notch downgrade of the credit
ratings of ING U.S., Inc. by S&P or Moody’s would not have resulted in an additional increase in our collateral
requirements. Based on the amount of credit outstanding as of December 31, 2012, a one-notch downgrade of the
credit ratings of ING U.S., Inc. by S&P or Moody’s would have resulted in an estimated increase in our collateral
requirements by approximately $1.2 billion. A two notch downgrade of the credit ratings of ING U.S., Inc. would
not have resulted in an additional increase in our collateral requirements beyond that resulting from a one notch
downgrade. The nature of the collateral that we may be required to post is principally in the form of cash and
U.S. Treasury securities. Alternative forms of collateral, such as LOC, may also be used.
Based on the amount of credit outstanding as of December 31, 2013 and 2012, a one notch downgrade of the
credit ratings of NN Group would not result in an increase in our estimated collateral requirements. A two-notch
downgrade of the credit ratings of NN Group by S&P would have resulted in an estimated increase in our
collateral requirements by approximately $15.0 million and $30.1 million, respectively. On January 14, 2014, the
letter of credit was cancelled and the corresponding guarantee obligation of ING V was extinguished. As a result,
as of January 14, 2014, we have no collateral requirements due to a two-notch downgrade of the credit ratings of
NN Group by S&P.
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