A.M. Best Upgrades Issuer Credit Ratings of New York Life; Affirms Financial Strength Rating.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the issuer credit ratings (ICR) to "aaa" from "aa+" and affirmed the financial strength rating (FSR) of A++ (Superior) of New York Life Insurance Company and its wholly-owned subsidiaries, New York Life Insurance and Annuity Corporation and NYLIFE Insurance Company of Arizona (collectively referred to as New York Life). Additionally, A.M. Best has upgraded the debt ratings to "aaa" on New York Life's funding agreement-backed securities (FABS) programs and the outstanding notes issued thereunder. A.M. Best has also upgraded the debt rating to "aa" from "aa-" on New York Life's existing surplus notes and affirmed the "AMB-1+" rating on its commercial paper program. The outlook for all ratings is stable. All companies are headquartered in New York, NY.

The ratings reflect New York Life's leading market position in the U.S. life insurance industry, its highly productive career agency force and its superior risk-adjusted capitalization. The rating also considers New York Life's very favorable liability profile, solid operating earnings and commitment to mutuality. New York Life is the largest mutual insurance company in the United States with over $162 billion in consolidated statutory assets and $256 billion in assets under management as of September 30, 2006.

New York Life enjoys the competitive advantage of its core career agency force and has led the industry in Million Dollar Round Table (MDRT) membership for fifty-two consecutive years. The agency channel has contributed to the company's strong persistency and prominent market presence within the individual life market, while delivering strong sales growth.

Additionally, New York Life's sizeable inforce block of traditional life insurance produces stable, long-term cash flows and is the foundation of the company's operating performance. The company's product portfolio is also absent of products containing aggressive secondary guarantees. The conservative nature of its product portfolio, together with its large block of ordinary life business, translates into one of the most creditworthy liability profiles in the industry.

Partially offsetting these positive factors is New York Life's exposure to broader risks in its international operations. Although A.M. Best believes that New York Life's international operations represent a source of earnings growth and diversification, they have the potential to produce results that are somewhat more volatile than the company's domestic businesses due to the macroeconomic and political uncertainties inherent in developing markets. However, A.M. Best notes that the geographic diversity of the countries and the establishment of meaningful market share serve to mitigate potential adverse results from individual countries within these operations.

Additionally, like all of its market leading peers in the domestic individual life and annuity marketplaces, New York Life continues to face intense competition and will be challenged to maintain its market position and sales momentum. Despite these challenges, A.M. Best notes that the company continues to perform well in its core individual life and asset accumulation businesses.

  The following debt ratings have been upgraded with a stable outlook:

  New York Life Funding - program rating to "aaa" from "aa+"
  -- to "aaa" from "aa+" on all outstanding notes issued under the
     program

  New York Life Global Funding - program rating to "aaa" from "aa+"
  -- to "aaa" from "aa+" on all outstanding notes issued under the
     program

  New York Life Insurance Company -
  -- to "aa" from "aa-" on $1 billion 5.875% surplus notes, due May
     2033

  The following debt rating has been affirmed:

  New York Life Capital Corporation -
  -- AMB-1+ commercial paper rating

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.