OREANDA-NEWS. Fitch Ratings has assigned a rating of 'BBB+' to Lincoln National Corp.'s (LNC) issuance of \$300 million of 10-year senior unsecured notes. LNC's long-term Issuer Default Rating is unaffected by this rating action. LNC's Rating Outlook is Stable.

On Feb. 11, 2015, Fitch affirmed the ratings of LNC and its insurance operating subsidiaries with a Stable Outlook.

KEY RATING DRIVERS

Fitch expects proceeds from the debt issuance to be used to pre-fund the maturity of LNC's \$250 million of 4.3% senior unsecured notes due June 15, 2015. Given the near-term maturity of the 4.3% notes, Fitch views the new issuance as effectively neutral to LNC's financial leverage.

Lincoln National Corp., headquartered in Radnor, PA, markets a broad range of insurance and asset accumulation products and financial advisory services primarily to the affluent market segment. The company reported consolidated assets of \$253 billion and common equity of \$15.7 billion at Dec. 31, 2014.

RATING SENSITIVITIES

Key rating triggers that may precipitate a rating upgrade include:

--Prolonged strong operating performance generating EBIT interest coverage in excess of 10x;
--Reported RBC above 450%;
--Trend of holding-company liquidity managed at 12-18 months of debt service and common stock dividends;
--Leverage maintained below 25%.

Conversely, key rating triggers that may lead to a rating downgrade include:

--Capital below expectations for a prolonged period. Fitch would expect reported RBC of 400% under normal conditions and 325% under stressed conditions;
--Leverage maintained above 30% and Total Financing and Commitments ratio above 1.5x;
--LNC's GAAP-based interest coverage remains below 5x for an extended period of time;
--Cash coverage at holding company below 1.0x interest/dividend needs;
--A material reserve increase or impairment of intangibles.

Fitch has assigned the following rating:

Lincoln National Corporation
--\$300 million of 3.35% senior unsecured notes due 2025 'BBB+'.