Fitch Rates Athene FA-Backed Note Programs 'A-'

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has assigned an 'A-' rating to Athene Global Funding secured notes program. The Rating Outlook is Stable.

KEY RATING DRIVERS

Athene Global Funding is a statutory trust domiciled in the state of Delaware. Athene Global Funding may from time to time offer up to $5 billion of its senior secured medium-term notes pursuant to a global debt issuance program. The trust was established for the sole purpose of issuing debt instruments secured by funding agreements issued by Athene Annuity & Life Assurance Company, a Delaware-domiciled insurance company, or Athene Annuity and Life Company, an Iowa-domiciled insurance company. These companies carry 'A-' Insurer Financial Strength (IFS) ratings from Fitch.

The assignment of the 'A-' ratings to the note program recognizes that the obligations are secured by a funding agreement with cash flow structures that enable the trustees to make payments on the notes. Thus the notes are dependent upon the credit quality of the insurer issuing the funding agreements and are therefore assigned the insurers' IFS rating.

On May 11, 2015 Fitch upgraded the IFS rating of Athene Annuity & Life Assurance Company to 'A-' from 'BBB+' with a Stable Outlook. On May 13, 2015 Fitch assigned initial 'A-' Insurer Financial Strength (IFS) ratings to Athene Annuity and Life Company; Athene Annuity & Life Assurance Company of New York; and Athene Life Re Ltd. At the same time, Fitch assigned a long-term Issuer Default Rating (IDR) of 'BBB' to Athene Holding Ltd. The Rating Outlook is Stable.

RATING SENSITIVITIES

While Fitch does not expect an upgrade in the near to intermediate term, key rating triggers that could result in a rating upgrade longer term include:

--Additional seasoning of the company's acquired in-force book of business and demonstrated profitability of new sales;

--Strong, consistent operating performance as measured by an operating ROE of 15% or higher;

--Maintenance of operating leverage on a consolidated GAAP basis of 11x or less.

The key rating triggers that could result in a ratings downgrade include:

--Large acquisitions that are either outside of AHL's historical risk preference and expertise or add significantly to the company's operating or financial leverage;

--Deterioration in operating performance, resulting in AHL's run-rate operating losses for four consecutive quarters;

--An increase in operating leverage on a consolidated GAAP basis to over 20x;

--Significant changes in asset allocation, which may include an increase in limited partnership exposure to over 15% or a large increase in BIG exposure.

FULL LIST OF RATING ACTIONS

Fitch has assigned the following rating with a Stable Outlook:

Athene Global Funding

--Secured notes program 'A-'.

Fitch currently rates the Athene companies as follows:

Athene Holding Ltd.

--Long-term IDR 'BBB'.

Athene Annuity & Life Assurance Company

Athene Annuity and Life Company

Athene Annuity & Life Assurance Company of New York

Athene Life Re Ltd.

--IFS 'A-'.

Additional information is available on www.fitchratings.com

Applicable Criteria

Exposure Draft: Insurance Notching Criteria (Proposed Methodology Changes) (pub. 12 May 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865576

Insurance Rating Methodology (pub. 04 Sep 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=756650

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=986019

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150608006079/en/

Fitch Ratings
Primary Analyst
Tana M. Higman
Director
+1-312-368-3122
Fitch Ratings Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Bradley S. Ellis, CFA
Director
+1-312-368-2089
or
Committee Chairperson
Brian C. Schneider, CPA, CPCU, ARe
Senior Director
+1-312-606-2321
or
Media Relations:
Alyssa Castelli, +1 212-908-0540
[email protected]
Elizabeth Fogerty, +1 212-908-0526
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Jefferson Health Plans and Latino Connection Announce Pennsylvania's 6th Statewide Latino Health Summit
• Rancher’s Premium Smokehouse Continues to Grow in the Southeast Through Hometown Grocery Expansion
• Cohen & Steers Closed-End Opportunity Fund, Inc. (FOF) Notification of Sources of Distribution Under Section 19(a)