Voya 2014 Annual Report Download - page 195

BBB from BBB- and its junior subordinated debt credit ratings to BB+ from BB. S&P also raised the
financial strength ratings of the operating subsidiaries to A from A-. All ratings were assigned a Stable
outlook.
• On September 4, 2014, Fitch affirmed the ratings of Voya Financial, Inc. and its operating subsidiaries
and maintained its Positive outlook.
• On July 3, 2014, A.M. Best affirmed the ratings of Voya Financial, Inc. and its operating subsidiaries.
A.M. Best maintained its Stable outlook on the financial strength rating of the key life subsidiaries and
revised the outlook to Positive from Stable on the issuer credit rating of Voya Financial, Inc. as well as
the ratings on the outstanding debt of Voya Financial, Inc.
• On May 13, 2014, Moody’s affirmed the ratings of Voya Financial, Inc. and its operating subsidiaries,
and revised the rating outlook to Positive from Stable.
• On March 14, 2014, S&P affirmed the ratings of Voya Financial, Inc. and its operating subsidiaries,
and revised the rating outlook to Positive from Stable.
• On March 6, 2014, Fitch affirmed the ratings of Voya Financial, Inc. and its operating subsidiaries and
revised the rating outlook to Positive from Stable.
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. 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.
Certain of our derivative and reinsurance agreements contain provisions that are linked to the financial
strength ratings of certain of our insurance subsidiaries. If financial strength ratings were downgraded in the
future, these provisions might be triggered and counterparties to the agreements could demand collateralization
which could negatively impact overall liquidity.
Based on the amount of credit outstanding as of December 31, 2014, a one-notch or two-notch downgrade in
Voya Financial, Inc.’s credit ratings by S&P or Moody’s would not have resulted in an additional increase in our
collateral requirements. 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.
Certain of our reinsurance agreements contain provisions that are linked to the financial strength ratings of
the individual legal entity that entered into the reinsurance agreement. If the insurance subsidiaries’ financial
strength ratings were downgraded in the future, the terms in our reinsurance agreements 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, 2014, a one-notch downgrade of
our insurance subsidiaries would have resulted in an estimated increase in our collateral requirements by
approximately $25 million. The nature of the collateral that we may be required to post is principally in the form
of cash, highly rated securities or LOC.
Certain of our derivative agreements contain provisions that are linked to the financial strength ratings of the
individual legal entity that entered into the derivative agreement. If insurance subsidiaries’ financial strength
ratings were downgraded in the future, the terms in our derivative agreements might be triggered and
counterparties to the derivative agreements could demand immediate further collateralization which could
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