A.M. Best Assigns Rating to Nationwide Financial's New Senior Unsecured Notes.OLDWICK, N.J. -- A.M. Best Co. has assigned a rating of "a-" to Nationwide Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc.'s (NFS (Network File System) The file sharing protocol in a Unix network. This de facto Unix standard, which is widely known as a "distributed file system," was developed by Sun. See file sharing protocol and WebNFS. NFS - Network File System ) (NYSE NYSE See: New York Stock Exchange : NFS) (Columbus, OH) proposed offering of $200 million 5.10% 10-year senior unsecured notes. The rating outlook is stable. All existing financial strength (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ), issuer credit (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) and debt ratings applicable to NFS and its life/health insurance subsidiaries are unchanged. A.M. Best expects NFS to use the proceeds of the offering to redeem its 7.10% Trust Preferred Securities issued under Nationwide Financial Services Capital Trust II. Consequently, the company's financial leverage is expected to remain unchanged at approximately 25%. NFS' 2005 interest coverage is projected to be in the range of eight to nine times, which is within A.M. Best's guidelines for the current ratings. The ratings recognize NFS' favorable business profile, which is highlighted by balanced revenue streams, strong and diversified distribution, sound earnings capabilities and high overall investment quality. NFS enjoys a solid competitive position as a provider of annuities, life insurance and retirement plans to both the retail and institutional markets. The company's ongoing initiatives to enhance the productivity of its distributors, streamline the new business process for life policies and expand product breadth have enabled it to successfully address evolving consumer needs and effectively manage risk. In addition, NFS benefits from the franchise value associated with being a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of Nationwide Mutual Insurance Company Nationwide Mutual Insurance Company & Affiliated Companies is a group of large U.S. insurance and financial services companies based in Columbus, Ohio. History Beginnings as Farm Bureau Mutual , a market leader in the property/casualty industry. Primary offsetting rating factors include NFS' level of intangibles to equity, which is somewhat high relative to similarly-rated peers. NFS also faces a highly competitive market in several of its core product lines, and A.M. Best believes the group will be challenged to materially increase its share of retirement assets as the baby-boomer generation nears retirement. Additionally, given NFS' heavy reliance on equity-based products, earnings performance will be somewhat correlated to the future performance of the equity markets. For Best's Debt Ratings, all other 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. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit www.ambest.com/lh. 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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