A.M. Best Downgrades Debt Ratings of GE Global Insurance Holdings Corporation; Revises Outlook to Negative.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 15, 2004 A.M. Best Co. has downgraded the debt ratings of various senior unsecured notes of GE Global Insurance Holdings Corporation (GE Global) (Overland Park Overland Park, city (1990 pop. 111,790), Johnson co., NE Kans., a residential suburb of Kansas City; inc. 1960. There is printing and publishing, and the manufacture of apparel, aircraft parts, cement, prepared foods, salt, chemicals, marine accessories, and signs. , KS) to "bbb+" from "a-" and revised the outlook to negative from stable. This rating action is the consequence of A.M. Best's recently completed annual review of GE Global's property and casualty insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. subsidiaries. A.M. Best's review focused on risk-adjusted capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , adequacy of current carried reserves, historical and prospective earnings capabilities, business profile, financial flexibility and strategic importance. The downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. of the senior debt ratings of GE Global is reflective of the issuer credit rating that was assigned to its largest subsidiary and lead operating company operating company A business that engages in transactions with outsiders. , Employers Re, and the notching notching Radiology Small grooves on the anterior aspect of ribs seen on a plain CXR of children with post-ductal–ductus arteriosus coarctation of the aorta, due to 'tracks' from the pressure of collateral vessels on the ribs applied after taking into consideration the linkage linkage In mechanical engineering, a system of solid, usually metallic, links (bars) connected to two or more other links by pin joints (hinges), sliding joints, or ball-and-socket joints to form a closed chain or a series of closed chains. to its ultimate parent, General Electric. As of December 2003, GE Global's financial leverage--debt as a percent of total adjusted capital--was 17.2%, which more than adequately supports its current debt ratings; however, cash and fixed charge coverages have been weak in recent years but provided three times coverage of its obligations at year-end 2003. The following debt securities have been downgraded and assigned a negative outlook: GE Global Insurance Holdings Corporation-- -- to "bbb+" from "a-" on senior unsecured notes 6.45% $400 million, due 2019 -- to "bbb+" from "a-" on senior unsecured notes 7.00% $600 million, due 2026 -- to "bbb+" from "a-" on senior unsecured notes 7.50% $350 million, due 2010 -- to "bbb+" from "a-" on senior unsecured notes 7.75% $350 million, due 2030 -- to "bbb+" from "a-" on senior unsecured shelf For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debtratings/. 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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