CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 21, 2003 12:00 AM (EDT)
A.M. Best Co. has assigned a debt rating of "bbb" to NLV Financial Corporation's (NLV Financial) $200 million 7.5% senior unsecured notes due August 2033. The financial strength rating and debt ratings for NLV Financial and National Life of Vermont have a negative outlook.
A.M. Best expects NLV Financial to use the debt proceeds to pay down, either in whole or in part, approximately $70 million of its wholly owned subsidiary, National Life Insurance Company's (NL) 8.25% surplus notes, which mature March 1, 2024 and are available for redemption beginning in 2004. The remaining proceeds will be used to provide additional capital to NL to support its growth objectives. A.M. Best views favorably NLV Financial's planned use of the net proceeds to support the growth objectives of NL and enhance NL's overall capitalization levels. The resulting financial leverage and interest coverage ratios are adequate for NL's financial strength rating of A (Excellent).
The initial debt rating reflects NL's strong growth in its core life and annuity business, positive operating metrics and diversified distribution and marketing channels. NL continues to effectively execute on its strategy of organic growth in its core businesses, selling traditional life and fixed and variable annuities to the national marketplace.
The following debt rating has been assigned:
NLV Financial Corporation-
-"bbb" rating on $200 million 7.5% senior unsecured notes, due August 2033
The following debt rating is unaffected:
National Life Insurance Company-
-"bbb+" rating on $70 million National Life of Vermont 8.25% surplus notes due March 1, 2024
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.