A.M. Best Assigns Debt and Issuer Credit Ratings to Universal American Financial Corp.OLDWICK, N.J. -- A.M. Best Co. has assigned indicative ratings of "bb+" on senior debt, "bb" on subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and "bb-" on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. securities, which may be issued under a $140 million shelf registration filed by Universal American Financial Corp.'s (Universal American) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :UHCO) (Rye Brook, New York Rye Brook is a village in Westchester County, New York, United States. The population was 8,602 according to the 2000 census. The Village of Rye Brook was established in 1982 and is in the Town of Rye. ) subsidiaries. Concurrently, A.M. Best has assigned a "bb+" issuer credit rating to Universal American. Universal American's various financial strength ratings are unaffected. All ratings have a stable outlook. Universal American filed the shelf registration to potentially provide for future general corporate purposes, capital expenditures, investments in subsidiaries, acquisitions and/or refinancing Refinancing An extension and/or increase in amount of existing debt. of debt. A.M. Best expects the total debt to capital ratio, including trust preferreds, to remain at approximately 30%. Universal American is a specialty health and life insurance holding company, providing a broad spectrum of health insurance and managed care products and services to the senior population. In May 2004, Universal American acquired Heritage Health Systems, Inc., a senior managed care system. The acquisition was Universal American's first venture into the Medicare Advantage market, which had distinct differences from its current Medicare supplement focus. Universal American has been successful in its strategy of purchasing and integrating newly acquired companies since 1991. The following indicative ratings have been assigned with a stable outlook to the $140 million shelf registration: Universal American Financial Corp.-- --"bb+" on senior debt --"bb" on subordinated debt --"bb-" on preferred stock An issuer credit rating of "bb+" has been assigned with a stable outlook to Universal American Financial Corp. The financial strength rating of B++ (Very Good) remains unaffected for the following subsidiaries of Universal American Financial Corp.: --Constitution Life Insurance Company --Pennsylvania Life Insurance Company --American Progressive Life & Health Insurance Co. of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of --American Pioneer Life Insurance Company --Penncorp Life Insurance Company --The Pyramid pyramid, structure pyramid. The true pyramid exists only in Egypt, though the term has also been applied to similar structures in other countries. Egyptian pyramids are square in plan and their triangular sides, which directly face the points of the Life Insurance Company The financial strength rating of B+ (Very Good) remains unaffected for Universal American Financial Corp.'s subsidiary, Union Bankers Insurance Company. For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 1,050 health companies and more than 130 HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, industry composites, please visit http://www.ambest.com/health/. For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debt. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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