TEXT-Fitch expects to rate Great-West Lifeco shares 'BBB+'

(The following statement was released by the rating agency)

Oct 9 - Fitch Ratings expects to assign the following rating to Great-WestLifeco's (TSE:GWO) planned issuance:

--C$150 million Series R, non-cumulative first preferred shares 'BBB+'.

GWO has offered the underwriters the option to buy an additional two millionshares. If the option is fully exercised, the gross proceeds will be C$200million. The offering is expected to close Oct. 11, 2012.

The new share's rating will be equivalent to the ratings on GWO's existingpreferred shares. Under Fitch's hybrid methodology, GWO's non-cumulativepreferred shares receive 100% equity credit. Fitch anticipates that the netproceeds will be used for general corporate purposes and to augment thecompany's current liquidity position.

At June 30, 2012 GWO's financial leverage was 22% and GAAP earnings-basedinterest and preferred dividend coverage was approximately 6 times (x). Proforma financial leverage, including the C$200 million issuance of Series Qnon-cumulative preferred shares in July 2012, remains unchanged at approximately22%.

On June 25, 2012, Fitch affirmed all of its ratings for GWO and GWO'ssubsidiaries with a Stable Outlook.

Fitch currently rates the GWO entities as follows:

Great-West Lifeco, Inc.--Long-term IDR 'A+';--6.14% senior debentures due March 21, 2018 'A';--4.65% senior debentures due Aug. 13, 2020 'A';--6.74% senior debentures due Nov. 24, 2031 'A';--6.67% senior debentures due March 21, 2033 'A';--5.998% senior debentures due Nov. 16, 2039 'A';--Series F, 5.9% non-cumulative first preferred shares 'BBB+';--Series G, 5.2% non-cumulative first preferred shares 'BBB+';--Series H, 4.85% non-cumulative first preferred shares'BBB+';--Series I, 4.5% non-cumulative first preferred shares 'BBB+';--Series J, 6% non-cumulative first preferred shares 'BBB+';--Series L, 5.65% non-cumulative first preferred shares 'BBB+';--Series M, 5.80% non-cumulative first preferred shares 'BBB+';--Series N, 3.65% non-cumulative first preferred shares 'BBB+';--Series P, 5.4% non-cumulative first preferred shares 'BBB+';--Series Q, 5% non-cumulative first preferred shares 'BBB+.'GWL&A Financial Corp.--Long-term IDR 'A+'.Canada Life Financial Corporation--Long-term IDR 'A+'.Great-West Life Assurance Company--IFS 'AA';--Long-term IDR 'AA-'.Canada Life Assurance Company--IFS 'AA';--Long-term IDR 'AA-';--6.4% subordinated debentures due Dec. 11, 2028 'A+'.Great-West Life and Annuity Insurance Company--IFS 'AA';--Short-term IDR 'F1+';--Commercial paper 'F1+'.London Life Insurance Company;First Great-West Life & Annuity Insurance Company--IFS 'AA'.Great-West Lifeco Finance (Delaware) LP--5.691% subordinated debentures due 2067 'BBB+';--7.127% subordinated debentures due 2068 'BBB+'.Great-West Life & Annuity Insurance Capital, LP--6.625% deferrable debentures due Nov. 15, 2034 'BBB+'.

Great-West Life & Annuity Insurance Capital, LP II--7.153% subordinated debentures due 2046 'BBB+'.

Great-West Life Capital Trust--Series A, 5.995% senior debentures due Dec. 31, 2052 'A'.

Canada Life Capital Trust--Series B, 7.529% senior debentures due June 30, 2052 'A'.Additional information is available at '

'. The ratings abovewere solicited by, or on behalf of, the issuer, and therefore, Fitch has beencompensated for the provision of the ratings.

Applicable Criteria and Related Research:--'Insurance Rating Methodology' (Sept. 19, 2012).Applicable Criteria and Related Research:Insurance Rating Methodology(New York Ratings Team)

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