S&P Afms Tower Group and Credit Union Services Rtgs.Business Editors MELBOURNE--(BUSINESS WIRE)--Standard & Poor's CreditWire Sept. 5, 2000--Standard & Poor's today affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. all the insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. financial strength and counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit ratings on the various Tower Ltd. (Tower) group companies following the announcement of the planned acquisition by Tower of Bridges 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. Group Pty. Ltd. (Bridges). At the same time, the counterparty credit ratings on Credit Union Services Corp. (Australia) Ltd. (CUSCAL CUSCAL Credit Union Services Corporation Australia Limited )-the present owner of Bridges-also have been affirmed (see list below). At a purchase price of A$168 million, the acquisition of Bridges is very significant for Tower, which continues its aggressive acquisition-based expansion aimed at establishing a secure long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. position in the Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. financial services market. The funding structure and goodwill associated with the acquisition will diminish Tower's debt leverage, interest coverage, and 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. relative to risk, but these measures are expected to remain within the tolerance of the existing ratings. Standard & Poor's expects that Tower will concentrate on consolidating its existing business in the near future, and will not undertake any significant acquisitions within the next two years. Bridges will provide Tower with important enhancements to the group's Australian retail funds under management and product array through the addition of the master trust, direct access to a large financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against network, and potential alliance benefits with the credit unions. Standard & Poor's, however, considers that the ownership and alliance relationships involved are inherently challenging, and that some benefits from the acquisition will only be evident in the longer term. The double-'A'-minus/Stable/'A-1'-plus counterparty credit ratings on CUSCAL were affirmed following the announcement of the sale of Bridges for A$148 million cash and A$20 million of shares in the listed entity Tower Ltd. (which CUSCAL is required to hold for two years). The agreement also provides that CUSCAL will receive a further A$4 million of shares in Tower Ltd. following a 40% increase in funds under management for the credit union sector over an indefinite INDEFINITE. That which is undefined; uncertain. INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure. 2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those time period. The transaction, which should be completed by Sept. 28, 2000, is expected to result in an improvement in CUSCAL's capital position, as well as enhancing its operating and financial flexibility. The profit and loss impact is expected to be minimal. CUSCAL's strategy of selling a noncore business to focus on core operations is viewed positively, Standard & Poor's said.--CreditWire RATINGS AFFIRMED, OUTLOOK STABLE Tower Life Australia Ltd. Insurer financial strength rating A Counterparty credit rating A/Stable/- Tower Life (New Zealand) Ltd. Insurer financial strength rating A Counterparty credit rating A/Stable/- Tower Ltd. Counterparty credit ratings BBB/Stable/A-2 Tower Financial Services Group Ltd. Counterparty credit ratings BBB/Stable/A-2 Tower Holdings Australia Pty Ltd. Counterparty credit ratings BBB/Stable/A-2 Tower Insurance Ltd. Insurer financial strength rating A Counterparty credit rating A/Stable/- Credit Union Services Corp. (Australia) Ltd. Counterparty credit ratings AA-/Stable/A-1+A $1 billion medium-term note program Unsecured AA-/A-1+ Subordinated A+ Short-term debt A-1+ |
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