S&P Lowers PA Dental Service and Related Rtgs to 'BB'.Business Editors NEW YORK--(BUSINESS WIRE)--Standard & Poor's Aug. 28, 2002--Standard & Poor's Ratings Services said today that it lowered its counterparty credit and financial strength ratings on Pennsylvania Dental Service Corp. (DDP (Distributed Data Processing) See distributed processing. DDP - Distributed Data Processing ) to double-'B' from triple-'B'-minus because of DDP's continued weak capitalization and earnings performance as well as its aggressive investment profile. The outlook is negative. Standard & Poor's also said that it lowered its financial strength ratings on DDP's affiliates -- Delta Dental 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 Inc. (DDNY), Delta Dental of Delaware Inc. (DDDE DDDE Defense Distribution Depot Europe (US Department of Defense) ), Delta Dental of West Virginia (DDWV), and Delta Dental of District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). (DDDC DDDC Dedicated Design Day Capacity (natural gas rate calculation) DDDC Defense Distribution Depot, San Diego, CA DDDC Defense Debriefing & Document Center ) -- to double-'B' from triple-'B'-minus. "DDP's market position is good and benefits from implicit financial support recently received from Delta Dental Plan Delta Dental Plan, n.pr an active member organization of the Delta Dental Plans Association (a not-for-profit organization), formed and guided by state dental societies to provide prepaid dental care to the public on a group basis. of California (DDPC DDPC Developmental Disabilities Planning Council (New York State) DDPC Digital Data Processing Center (NASA) DDPC Defense Demilitarization Program Course DDPC DCSLOG Data Processing Center )," noted Standard & Poor's credit analyst Steven Ader. Standard & Poor's does not consider DDP, which does business as Delta Dental of Pennsylvania, strategically important to DDPC's financial performance. However, DDPC provides implicit financial support for DDP, most recently in the form of a $3 million surplus note. In addition, DDPC has provided significant financial support to develop the New York market and recently expanded that to include Maryland and the District of Columbia. The ratings on DDP's affiliates -- DDNY, DDDE, DDWV, and DDDC -- are based on a guarantee by DDP. Standard & Poor's expects DDP's net income to improve to about $2 million in 2002. Capital adequacy is expected to improve in 2002 and 2003. Liquidity is expected to improve to a good level. If DDP is not successful in improving profitability and capitalization, Standard & Poor's will likely lower the ratings further. A complete list of the ratings is available to RatingsDirect subscribers at www.ratingsdirect.com, as well as on Standard & Poor's public Web site at www.standardandpoors.com under Ratings Actions/Newly Released Ratings. Copyright 2002, Standard & Poor's Ratings Services |
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