S&P BULLETIN: Acquisition No Impact on MBF Rtg.Business Editors MELBOURNE, Australia--(BUSINESS WIRE)--July 1, 2003 Standard & Poor's Ratings Services said today that Medical Benefits Fund of Ltd.'s (MBF MBF Thousand Board Feet MBF My Best Friend MBF Microsoft Business Framework MBF Medical Benefits Fund MBF My Boyfriend MBF Man's Best Friend MBF Management By Fact MBF Master Business Function (J.d. ; A-/Stable/ 3/4) acquisition of NRMA NRMA National Roads & Motorists' Association (Australia) NRMA National Reloading Manufacturers Association NRMA Natural Resource Management Area NRMA National Resources Mobilization Act (Canada) Health Pty Ltd. (BBBpi/ 3/4/ 3/4) from Insurance Australia Group Insurance Australia Group Limited (IAG) is an Australian publicly-listed company with its shares traded on the Australian Stock Exchange as ASX: IAG. The company was formed by the demutualisation of the NRMA Insurance business in July 2000 and a return of shares to the Ltd. (IAG) has no rating impact on MBF. The purchase of NRMA Health for A$100 million includes goodwill of about A$50 million, which can easily be accommodated within MBF's net asset position, with only minimal diminution in its absolute capital strength and strong capital ratios as measured by Standard & Poor's risk-based capital adequacy ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. . The sale is effective immediately and also involves a six-year marketing alliance with IAG. Copyright 2003, Standard & Poor's Ratings Services |
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