On Feb. 26, 2009, Standard&Poor's Ratings Services lowered its counterparty credit rating on Lincoln National Corp. (LNC) to 'A-/A-2' from 'A+/A-1'. At the same time, Standard&Poor's lowered its counterparty credit and financial strength ratings on most of Lincoln's operating companies to 'AA-' from 'AA'. The outlook on all of these companies is stable. The downgrade of the operating companies reflects higher volatility and lower levels of earnings within the group's operating profile, particularly for its variable-annuity and asset-management businesses. The deterioration within the equity and credit markets has led to weakness in earnings and investment performance that has outstripped our expectations at the previous rating level. The two-notch downgrade of LNC reflects the earnings and capital
