DBRS Downgrades John Hancock Financial Services, Inc. to AA (low)

DBRS has today downgraded the senior debt rating of John Hancock Financial Services, Inc. (JHFS) to AA (low) from AA to better reflect the status of JHFS as an intermediate holding company as well as the applicable senior guarantee from Manulife Financial Corporation (MFC), which is also rated AA (low). Concurrently, with this action all other ratings on Manulife and its affiliates are being confirmed at their current levels (see accompanying Manulife press release dated November 24, 2009).

Historically, DBRS regarded the consolidated JHFS as an integrated operating entity equivalent to Manufacturers Life Insurance Company (MLI), operating under the MFC umbrella. Given the uncertainty created by market events over the past 18 months, DBRS has refined its approach to the relative strength of the MLI operating subsidiary versus the JHFS intermediate holding company.

In addition, since JHFS and its subsidiaries have not been reporting entities since 2005, it is also appropriate that DBRS now places more reliance on the applicable senior guarantee provided by MFC in assigning the JHFS rating.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Canadian Life Insurance Companies, which can be found on our website under Methodologies.

This is a Corporate (Financial Institutions) rating.