A.M. Best Rates MONY Group's New Senior Debt Offering.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 8, 2000

A.M. Best Co. has assigned an "a-" rating to $275 million of 7.45% five-year senior notes issued by The MONY Group Inc. and affirmed the ratings on the company's existing debt. The securities were issued under MONY's previously filed $1 billion shelf registration with the Securities & Exchange Commission. The A (Excellent) financial strength rating on the group's life insurance operating companies remains unchanged.

The proceeds of the issue will be used to partially finance MONY's purchase of The Advest Group, Inc., a stock and cash transaction valued at approximately $300 million. Upon completion of the Advest acquisition, MONY's financial leverage will be approximately 22%, which is lower than the average of its peers and consistent with the rating category. MONY's core operations generate sustainable earnings and cash flow, which provide sound fixed charge coverage. A.M. Best expects the acquisition to close by year-end, and that Advest will be accretive to earnings on a cash basis in 2001. The remaining portion of the proceeds will be used for general corporate purposes, affording MONY additional financial flexibility going forward.

The ratings reflect the potential benefits the Advest acquisition provides to MONY, including enhanced distribution capabilities, new product offerings and increased scale, as well as earnings diversification from a non-insurance regulated source. A.M. Best believes Advest is a good strategic fit for MONY as it builds on the organization's strategy of selling financial advice to the upscale market and strengthens the company's presence in the capital markets.

MONY's ratings are supported by its solid capitalization, expanding distribution capabilities, improving operating fundamentals, sound fixed coverage and conservative financial leverage compared to peers. The company is on well on track in executing its recent initiatives to improve distribution productivity via tiering of career agents, enhance financial flexibility by exiting non-core businesses, lower unit costs through expense reduction efforts and improve the quality of its balance sheet through disposition of significant equity real estate holdings. A.M. Best expects this momentum to continue, leading to enhanced revenues and earnings.

The rating strengths are tempered by MONY's modest operating returns, vulnerability to significant annuity withdrawals and exposure to potential earnings volatility from its variable annuity business. However, MONY's strong capital and liquidity position somewhat mitigates these concerns.

The following debt ratings have been assigned:

-- The MONY Group Inc.:

-- "a-" rating on $275 million 7.45% senior notes due December, 2005

-- AMB-2 commercial paper rating

The following rating on existing debt has been affirmed:

-- The MONY Group Inc.:

-- "a-" rating on $300 million 8.35% senior notes due March, 2010

The following ratings on securities available under a shelf registration have been affirmed:

-- The MONY Group Inc.:

-- senior unsecured debt rating of "a-"

-- junior subordinated debt rating of "bbb+"

-- preferred stock rating of "bbb+"

-- MONY Capital Trust I and II:

-- preferred stock rating of "bbb+"

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.