Fitch Places Ratings of Sun Life Financial Inc.'s U.S. Subs on Rating Watch Negative

  Fitch Places Ratings of Sun Life Financial Inc.'s U.S. Subs on Rating Watch
  Negative

Business Wire

CHICAGO -- December 17, 2012

Fitch Ratings has placed the 'A-' Insurer Financial Strength (IFS) ratings of
Sun Life Financial Inc.'s (TSE, NYSE: SLF) U.S. life insurance subsidiaries on
Rating Watch Negative. A complete list of ratings follows at the end of this
release.

Today's rating action follows SLF's announcement that it reached a definitive
agreement to sell Sun Life Assurance Company of Canada (U.S.) and Sun Life
Insurance & Annuity Co. of New York to Delaware Life Holdings, a company owned
by shareholders of Guggenheim Partners. The sale will represent a complete
transfer of U.S. variable annuity risk for SLF, since this business is
contained in a separate legal entity. Other businesses being sold include
fixed annuity and fixed indexed annuity products, corporate and bank-owned
life insurance products and variable life insurance products.

In January 2012, Fitch had downgraded the U.S. life subsidiaries 3 notches
following SLF's announcement that it was exiting the U.S. variable annuity and
individual insurance markets. At that time, Fitch viewed the subsidiaries as
having Limited Importance from a strategic perspective. On a stand-alone
basis, Fitch believed the ratings were in the 'BBB' category but the companies
continued to benefit from SLF's ownership.

Resolution of the Rating Watch will occur following further discussions with
management and completion of the sale and will likely result in a downgrade of
the IFS ratings by at least one notch.

Fitch has placed the following ratings on Rating Watch Negative:

Sun Life Assurance Co. of Canada (U.S.)

--IFS ratings at 'A-'.

Sun Life Insurance & Annuity Co. of NY

--IFS ratings at 'A-'.

Additional information is available at 'www.fitchratings.com'. The ratings
above were unsolicited and have been provided by Fitch as a service to
investors.

Applicable Criteria and Related Research:

--'Insurance Rating Methodology', Oct. 18, 2012.

Applicable Criteria and Related Research:

Insurance Rating Methodology -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=692293

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Contact:

Fitch Ratings
Primary Analyst
Tana M. Higman, +1-312-368-3122
Director
Fitch, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
R. Andrew Davidson, CFA, +1-312-368-3144
Senior Director
or
Committee Chairperson
James B. Auden, CFA, +1-312-368-3146
Managing Director
or
Media Relations
Brian Bertsch, New York, +1-212-908-0549
brian.bertsch@fitchratings.com