A.M. Best Rates Western & Southern Financial Group's New Debt Securities.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 16, 2004 A.M. Best Co. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. a debt rating of "aa-" to the $150 million 30-year 5.75% senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. notes to be issued by Western & Southern Financial Group, Inc. (Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. , OH), which in effect is an extension of the existing debt rating. The outlook on the rating is stable. These notes will be issued through a private placement offered under Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. and represent a further issuance of the 30-year notes issued on July July: see month. 7, 2003. The issuer is an intermediate holding company of the group, which operates under the mutual insurance holding company structure. The financial strength ratings of A++ (Superior) on the group's core life insurance subsidiaries, The Western and Southern Life Insurance Company and Western-Southern Life Assurance Company, (both in Ohio) remain unaffected. The proceeds will be used for general corporate purposes, including possible acquisitions. Following this issuance, Western & Southern's overall financial leverage is low at 11%, while its fixed charge coverage is strong. The debt offering provides funds to further expand its product and distribution capabilities, whether through acquisitions or proprietary financial products. The rating reflects the group's solid earnings, superior 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. and conservative operating profile. The group's stable earnings provide strong debt service capacity to support fixed charges. The rating also recognizes the group's strong regional presence, as well as the excellent overall quality and performance of the company's investment portfolio. Offsetting factors include the intensely competitive nature of the 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. market and the group's geographic concentration in the Midwest, which contributes to the below average growth of its core traditional life products relative to the industry as a whole. In addition, the group may be challenged to grow earnings at levels commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with its peers. The following debt rating has been assigned: Western & Southern Financial Group, Inc.-- -- "aa-" on $150 million 30-year 5.75% senior unsecured notes, due 2033 For a list of A.M. Best's debt ratings, please visit http://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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