Fitch Raises Transamerica Finance Corp.'s Commercial Paper Rating.Business Editors
NEW YORK--(BUSINESS WIRE)--Aug. 2, 2000
Fitch, the international rating agency formed by the merger of Fitch IBCA IBCA International Braille Chess Association
IBCA Institute of Burial and Cremation Administration
IBCA Integrated Business Communications Alliance
IBCA International Barbeque Cookers Association
IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., upgraded Transamerica Finance Corporation's (TFC TFC Traffic
TFC Traffic (logging abbreviation)
TFC Team Fortress Classic (game)
TFC The Filipino Channel
TFC Thin Film Composite (type of reverse osmosis membrane) ) commercial paper rating, changed TFC's long-term debt Long-Term Debt
Loans and financial obligations lasting over one year.
For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. rating Outlook to Positive from Stable and affirmed af·firm
v. af·firmed, af·firm·ing, af·firms
1. To declare positively or firmly; maintain to be true.
2. To support or uphold the validity of; confirm.
v.intr. all AEGON USA Inc. (AEGON USA) ratings (see detailed list below).
The rating actions follow AEGON N.V.'s decision to retain TFC's non-insurance business and AEGON N.V.'s plans to extend its guarantee to TFC's commercial paper program.
The change in TFC's commercial paper rating to 'F1+' from 'F1' is based on AEGON N.V.'s unconditional and irrevocable Unable to cancel or recall; that which is unalterable or irreversible.
IRREVOCABLE. That which cannot be revoked.
2. A will may at all times be revoked by the same person who made it, he having a disposing mind; but the moment the testator is guarantee of TFC's commercial paper going forward. TFC is expected to retain its current backup liquidity facilities of $4.5 billion for the near term. Fitch's ratings for TFC's long-term debt remain: senior debt 'A' and subordinated debt Subordinated Debt
A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". 'A-', with a Positive Rating Outlook for both.
The Positive Outlook is supported by the strength of TFC's ultimate parent, AEGON N.V. While no formal support agreement exists between TFC and AEGON N.V., AEGON N.V. has committed to maintaining debt-to-tangible equity at or below 6.5 times.
The affirmation of the AEGON USA, Commonwealth General and Transamerica Corporation's (TA) senior debt and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders.
Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. ratings reflects Fitch's view that the adjustments made to the ratings on July 21, 1999, encompassed the possibility that the non-insurance units could be retained by AEGON N.V., at least in the intermediate term, and that the financing requirements of the non-insurance business could become a more permanent part of AEGON N.V.'s capital structure.
AEGON N.V.'s credit quality is integral to AEGON USA's debt ratings as AEGON N.V. guarantees the debt assumed by AEGON USA with the purchase of the Commonwealth General and the commercial paper issued by a special-purpose subsidiary of AEGON USA, AEGON Funding Corporation, used to fund the purchase of TA. Although Fitch does not rate AEGON N.V., Fitch views AEGON N.V.'s financial strength and flexibility as very strong.
The affirmation of the insurer financial strength, commercial paper and short-term insurer financial strength ratings of AEGON USA's insurance subsidiaries continues to reflect the consolidated company's good capital position relative to insurance risks, established market position in a diverse group of businesses, the expertise and commitment of management of U.S.-based AEGON USA, strong liquidity and high-quality investment portfolio.
TA's insurance operations are managed by AEGON USA, despite being owned directly by AEGON, N.V., and therefore Fitch rates all the U.S. operations of AEGON USA as a group.
-- Transamerica Finance Corporation -- Commercial Paper,'F1+'.
Fixed-Income Rating Outlook Positive
-- Transamerica Finance Corporation -- Senior Debt,'A'.
-- Transamerica Finance Corporation -- Subordinated Debt,'A-'.
Insurer Financial Strength Ratings Affirmed, Rating Outlook
-- AUSA AUSA Association of the United States Army
AUSA Assistant United States Attorney
AUSA Auckland University Students Association
AUSA Aberdeen University Students' Association (UK)
AUSA Allied United States of America Life Insurance Company Inc., 'AA+'.
-- Bankers United Life Assurance Company, 'AA+'.
-- Life Investors Insurance Co. of America, 'AA+'.
-- Monumental Life Insurance Company, 'AA+'.
-- PFL 1. (language) PFL - A concurrent extension of ML by Holmstrom and Matthews, using CCS.
["PFL: A Functional Language for Parallel Programming", S. Holmstrom in Proc Declarative Language Workshop, London 1983].
2. Life Insurance Company, 'AA+'.
-- Peoples Benefit Life Insurance Company, 'AA+'.
-- Western Reserve Life Assurance Co., 'AA+'.
-- Transamerica Occidental oc·ci·den·tal or Oc·ci·den·tal
Of or relating to the countries of the Occident or their peoples or cultures; western.
A native or inhabitant of an Occidental country; a westerner.
Noun 1. Life, 'AA+'.
-- Transamerica Life & Annuity, 'AA+'.
-- Transamerica Life of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , 'AA+'.
-- Transamerica Life of Canada, 'AA+'.
S-T Insurer Financial Strength/Commercial Paper Ratings Affirmed,
Rating Outlook Stable
-- AUSA Life Insurance Company Inc., 'F1+'.
-- Monumental Life Insurance Company, 'F1+'.
-- Transamerica Occidental Life Insurance Company, 'F1+'.
-- Transamerica Life & Annuity, 'F1+'.
Fixed-Income Ratings Affirmed, Rating Outlook Stable
-- AEGON USA Inc. -- Senior Debt, 'AA-'.
-- Commonwealth General -- Senior Debt, 'AA-'.
-- Transamerica Corporation Transamerica Corporation is a holding company for various life insurance companies and investment firms doing business primarily in the United States.
Transamerica began as a holding company controlled by A. P. -- Senior Debt, 'AA-'.
-- Transamerica Corporation -- Preferred Stock, 'A+'.
Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual-headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in over 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Banks, Corporations, Structured Finance, Insurance, Sovereigns and Public Finance Markets worldwide.