{"id":48198,"date":"2017-03-13T20:37:00","date_gmt":"2017-03-14T00:37:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48198"},"modified":"2025-07-15T20:39:27","modified_gmt":"2025-07-16T00:39:27","slug":"slf-sp-improves-outlook-to-positive","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48198","title":{"rendered":"SLF : S&#038;P Improves Outlook to Positive"},"content":{"rendered":"<p>Standard &#038; Poor&#8217;s <a href=\"https:\/\/www.standardandpoors.com\/en_AU\/web\/guest\/article\/-\/view\/type\/HTML\/id\/1814446\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>\u2022We are revising our outlook on Sun Life Financial to positive, reflecting our belief that the company will maintain AAA capital adequacy post-LICAT rollout, which would lead to an upgrade within the next 24 months.\n<li>\u2022We also expect the company to maintain modestly growing net income over the next two years.\n<li>\u2022At the same time, we affirmed our &#8216;AA-&#8216;ratings on SLF and its core subsidiaries.<\/ul>\n<p><b>&#8230;<\/b><br \/>&#8220;Over the last five years, the company has successfully executed its four-pillar strategy, focusing on its Canadian, Asian, Investment Management and US group benefits businesses.&#8221; said S&#038;P Global Ratings credit analyst Peggy Poon. Given the significantly de-risked business risk profile following the successful sale of the U.S. individual annuity business in 2013 and our forecast for Canada&#8217;s macroeconomic environment, we believe the company will maintain &#8216;AAA&#8217; capital adequacy as measured by our model prospectively in addition to modestly growing its net income over the next few years.<\/p>\n<\/blockquote>\n<p>Affected issues are SLF.PR.A, SLF.PR.B, SLF.PR.C, SLF.PR.D, SLF.PR.E, SLF.PR.G, SLF.PR.H, SLF.PR.I, SLF.PR.J and SLF.PR.K.<\/p>\n<p>The FixedResets of the company exhibit an Implied Volatility of 18% &#8230; which is higher than the high-single-digits I would consider normal for an investment-grade company, but lower than I would expect if the market fully subscribed to my theory that these issues will eventually be subject to a Deemed Retraction.<\/p>\n<div align=\"center\"><a href=\"http:\/\/prefblog.com\/wp-content\/uploads\/2017\/03\/impVol_SLF_170313.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/prefblog.com\/wp-content\/uploads\/2017\/03\/impVol_SLF_170313-300x247.jpg\" alt=\"impvol_slf_170313\" width=\"400\" height=\"329\" class=\"alignnone size-medium wp-image-34520\" ><\/a><br \/><i>Click for Big<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Standard &#038; Poor&#8217;s has announced: \u2022We are revising our outlook on Sun Life Financial to positive, reflecting our belief that the company will maintain AAA capital adequacy post-LICAT rollout, which would lead to an upgrade &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-48198","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48198"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48198\/revisions"}],"predecessor-version":[{"id":48199,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48198\/revisions\/48199"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}