OREANDA-NEWS. Fitch Ratings has assigned an expected rating of 'BBB(EXP)' to Voya Financial, Inc.'s (Voya) $500 million issuance of 3.65% senior notes due June 13, 2026 and $300 million issuance of 4.8% senior notes due June 13, 2046. The offering is expected to close on June 13, 2016.

KEY RATING DRIVERS

This new issue is rated equivalent to the ratings of Voya's existing senior debt. Proceeds from this new issue will be used to fund Voya's proposed cash tender offer for up to $800 million of currently outstanding debt. Financial leverage was approximately 22% at March 31, 2016, unchanged from year-end 2015.

Fitch affirmed Voya's and its insurance operating subsidiaries ratings on April 7, 2016. The Rating Outlook is Stable. For more details, see Fitch's press release at www. fitchratings. com.

RATING SENSITIVITIES

The key rating triggers that could result in an upgrade include:

--Continued growth in operating profitability that leads to an improvement in operating ROE to over 11%;

--Sustained maintenance of GAAP adjusted operating earnings-based interest coverage of more than 10x;

--Private sale of closed-block book at good value with boost to capitalization and reduction in volatility and risk;

--Reported RBC above 450% and financial leverage below 20%.

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

--A decline in reported RBC below 375%;

--Financial leverage exceeding 30%;

--Significant adverse operating results that lead to GAAP adjusted operating earnings-based interest coverage below 6x;

--Material reserve charges required in the company's insurance/variable annuity books.

The rating of the Voya Holdings Inc. notes is directly linked to the credit quality of ING Group, the guarantee provider. A change in Fitch's assessment of the credit quality of ING Group would automatically result in a change of the rating on the Voya Holdings Inc. notes. Any change in Fitch's view on the contract of guarantee, or deterioration in the credit quality of the counterparties may result in a downgrade of the notes.