Lincoln National Corp.

The stable outlook reflects S&P Global Ratings' expectation that the group will maintain very strong capital and its strong competitive position. We could lower the ratings on LNC within the next two years if: Capital adequacy deteriorates to a level we expect will remain deficient at 'AA'; The group experiences material sales declines or persistent net outflows, signaling its competitive position has weakened; or Funding structure, as measured by financial leverage and fixed-charge coverage ratios, no longer supports the current ratings. We do not expect to raise the ratings on LNC within the next two years because we think its capital is currently marginally redundant at 'AA', and, thus, its financial risk profile has limited upside potential. We also think

...We expect Lincoln National Corp. (LNC) to remain financially strong while lowering financial leverage and improving fixed charge coverage. We expect the group to maintain '##' capital adequacy per our proprietary risk-based capital model over the long-term, reflecting an effective risk management program and strong commitment from management to maintain capital adequacy at current levels. We also expect the company to improve its leverage position and free cash flow through various initiatives. While each has execution risk given the current macroeconomic uncertainty and market volatility, we view its expected path as manageable and critical to rating stability. LNC's sophisticated, model-based risk management should continue to guide its strategy execution regardless of macroeconomic conditions. The company has long had a risk-aware board and risk-culture that is well-embedded throughout the organization. Despite more recent challenges, we think the team can navigate and execute its strategy,...

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