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DUFF & PHELPS RATES LIFE PARTNERS GROUP, INC., MASSACHUSETTS GENERAL LIFE INSURANCE COMPANY AND PHILADELPHIA LIFE INSURANCE COMPANY

 CHICAGO, Aug. 3 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has upgraded the senior subordinated debt rating of Life Partners Group, Inc. (LPG) from 'B' (Single-B) to 'BB-' (Double-B-Minus). The claims paying ability ratings for Massachusetts General Life Insurance Company (MGLIC) and Philadelphia Life Insurance Company (PLIC) have been reaffirmed at `A+' (Single-A-Plus).
 The upgrade of LPG's senior subordinated debt reflects the initial public offering of 16.8 million shares of common stock earlier this year and the refinancing of the senior term loan in June of 1993. LPG had total assets of $3.3 billion, total debt of $249 million, and stockholders' equity of $300 million at March 31, 1993, after the initial public offering. Proceeds of the offering were used to redeem all outstanding payment-in-kind preferred stock in the amount of $122 million, reduce outstanding senior debt by $52 million, and eliminate G.E. Capital's ownership interest in LPG. The senior debt refinancing results in substantial interest expense savings. After the recapitalization, the pro forma fixed obligation ratio improved to 45 percent at March 31, 1993, from 58 percent at yearend 1992.
 LPG is the ultimate parent of both MGLIC and PLIC. The reaffirmation of the claims paying ability ratings reflects a combination of strong returns on assets and surplus, acceptable operating leverage ratios, and strong product designs and marketing programs. Weighed against these positives are the continued large cash flow requirements of LPG and aggressive growth plans.
 -0- 8/3/93
 /CONTACT: Sandra A. Seidl, A.S.A. of Duff & Phelps Credit Rating Co., 312-368-3116/
 (LPG)


CO: Life Partners Group, Inc.; Massachusetts General Life Insurance
 Co.; Philadelphia Life Insurance Company ST: Massachusetts, Pennsylvania IN: INS SU: RTG


WB -- NY043 -- 8854 08/03/93 11:18 EDT
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Publication:PR Newswire
Date:Aug 3, 1993
Words:288
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