A.M. Best Assigns Senior Secured Debt Rating to MONY Holdings, LLC.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--April 30, 2002

A.M. Best Co. has assigned an "aaa" senior secured debt rating for up to $450 Million of floating rate insured notes issued by MONY Holdings, LLC (MONY Holdings).

The approximately 15-year amortizing notes are guaranteed as to timely payment of interest and principal by Ambac Assurance Corporation (Ambac), a monoline financial guarantor. The notes represent a monetization of future distributable cash flows from a closed block of business established within MONY Life Insurance Company (MONY Life) and MONY Holdings, LLC ("MONY Holdings").

MONY Holdings is a wholly-owned subsidiary of The MONY Group, Inc. (NYSE: MNY). Established as an intermediate holding company for purposes of issuing the notes, MONY Holdings owns 100% of MONY Life. Within MONY Life, a closed block was established with regulatory approval in 1998 when The MONY Group, Inc.'s demutualization and conversion to a publicly-held holding company was completed. The closed block is primarily comprised of participating whole life insurance policies with significant seasoning and broad geographic distribution. Proceeds of the notes will be partially held at MONY Holdings as credit enhancement in a cash collateral account and the balance will be dividended to and invested by MONY Group in the higher-margin and higher-return segments of its portfolio of business activities.

The notes represent a recently developed financing innovation based on monetizing value associated with assets held against regulator-approved closed blocks of life insurance policies. A.M. Best's rating of the transaction incorporates a review of the structure, legal documentation and regulatory environment; an analysis of the underlying cash flows and actuarial assumptions; and assessments of the payment assurance of Ambac and the financial strength of MONY Life. The rating process included due diligence and engagement with MONY Life and its advisers, with the actuarial consultants to the transaction and with Ambac.

At issuance, 20% of the note sale proceeds is deposited in a cash collateral account at MONY Holdings and invested in liquid and highly-rated securities. Note holders benefit from this credit enhancement through a first priority interest in the cash collateral account and related investment income. The balance of note sale proceeds is dividended to The MONY Group, Inc. Debt service for the notes is sourced from:

- Assessment of the transaction structure and documentation, including credit
enhancement, security perfection arrangements, hedge provisions, sponsor
covenants and legal counsel opinions;

- Review of the transaction cash flow projections as provided by MONY Life,
including an assessment of stress scenarios and underlying actuarial
assumptions of the closed block assets, along with a report provided by an
actuarial consultant;

- A.M. Best's sensitizing of the transaction cash flow projections, based on
our views on various key factors such as mortality, lapse rates, interest
rates, and investment conditions;

- A.M. Best's A (Excellent) Financial Strength Rating and a- Senior Debt Rating
with stable outlook for The MONY Group, Inc., MONY Life, and other group
members. These ratings are concurrently affirmed;

- Ongoing reporting by MONY Holdings as to invested assets and audited
financial statements;

- Ongoing reporting by MONY Life which includes regulatory and GAAP financial
information routinely analyzed by A.M. Best as well as transaction-specific
information--actuarial reports, actuarial opinions, glide path reports and
closed block information;

- Review and analysis of public information on Ambac as well as interactive due
diligence with senior management; and,

- Due diligence with MONY Life and MONY Life's advisers and consultants.

The notes do not have recourse to MONY Life, The MONY Group, Inc., or any affiliate or subsidiary of MONY Holdings. The notes have limited recourse against MONY Holdings and in the event of a default have a deficiency claim up to the fair market value of the closed block business. Debt service from dividend cash flow is subordinate to prior claims by closed block and non-closed block policyholders. However, such claims are reasonably predictable over the long-term such that closed block assets can be expected to be sufficient to meet assumptions of policyholder obligations stretching out over an extended long-term horizon. The closed block's "glide path"--the projected asset / liability ratio as closed block assets are utilized to meet closed block policyholder obligations over time--is a key measure of the expected performance of the closed block. MONY Life is able to adjust its dividend scale, and has recently demonstrated this non-binding capability to maintain the actual glide path in line with expectations.

The "aaa" rating reflects the insurance policy issued by Ambac for the benefit of the note holders as well as the credit quality of Ambac. In addition, the rating analysis incorporated the following:

- Assessment of the transaction structure and documentation, including credit
enhancement, security perfection arrangements, hedge provisions, sponsor
covenants and legal counsel opinions;

- Review of the transaction cash flow projections as provided by MONY Life,
including an assessment of stress scenarios and underlying actuarial
assumptions of the closed block assets, along with a report provided by an
actuarial consultant;

- A.M. Best's sensitizing of the transaction cash flow projections, based on
our views on various key factors such as mortality, lapse rates, interest
rates, and investment conditions;

- A.M. Best's A (Excellent) Financial Strength Rating and a- Senior Debt Rating
with stable outlook for The MONY Group, Inc., MONY Life, and other group
members. These ratings are concurrently affirmed;

- Ongoing reporting by MONY Holdings as to invested assets and audited
financial statements;

- Ongoing reporting by MONY Life which includes regulatory and GAAP financial
information routinely analyzed by A.M. Best as well as transaction-specific
information--actuarial reports, actuarial opinions, glide path reports and
closed block information;

- Review and analysis of public information on Ambac as well as interactive due
diligence with senior management; and,

- Due diligence with MONY Life and MONY Life's advisers and consultants.

Given the complexity of this transaction as a novel form of life insurance securitization, A.M. Best will maintain close ongoing monitoring of closed block asset performance.

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.