A.M. Best Assigns Ratings to Protective Life's Shelf Registration.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--May 7, 2003 A.M. Best Co. has assigned indicative ratings of "a+" senior debt, "a" 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". , "a" preferred securities and "a-" 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. to Protective Life Corporation's (NYSE NYSE See: New York Stock Exchange : PL) (Birmingham, AL) $500 million shelf registration recently filed with the Securities and Exchange Commission. Also, the ratings on the company's existing debt securities have been affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. . Concurrently, the financial strength ratings on Protective's life/health and property/casualty insurance subsidiaries are unaffected. All ratings have a stable outlook. Protective's financial leverage--total debt plus preferred securities--is approximately 29%. A.M. Best expects Protective's debt-to-capital ratio to remain within the 25% to 30% range in the near to medium term. In addition, A.M. Best believes Protective's future earnings will provide strong debt service coverage and enable capitalization to remain fairly constant. The ratings reflect the company's diverse earnings sources and strong operating performance in all business lines. Steady sales and profitability are supported by its diversified network of non-captive distribution channels and its well-managed growth strategy. Protective continues to enhance operating efficiency through use of advanced technology and a decentralized de·cen·tral·ize v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es v.tr. 1. To distribute the administrative functions or powers of (a central authority) among several local authorities. organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. . Finally, Protective maintains a high quality investment portfolio, which has experienced a significantly lower level of credit losses and impairments compared to its peers. The following indicative debt ratings have been assigned: Protective Life Corporation-- -- "a+" on senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. -- "a" on subordinated debt -- "a-" on preferred stock PLC Capital Trust V and VI-- -- "a" on preferred securities For a list of A.M. Best's current debt ratings, please visit www.ambest.com/ratings/debtrating/companies.html. 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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