DUFF & PHELPS: SUNAMERICA INC. SENIOR DEBT RATING REAFFIRMED AT 'A', PREFERRED STOCK RATING REAFFIRMED AT 'A-'
CHICAGO, Oct. 27 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the senior debt rating of SunAmerica Inc. (SunAmerica) at "A" (Single-A). The rating reflects the company's reasonable financial leverage, good fixed charge coverage, and improving asset quality. Duff & Phelps has also reaffirmed SunAmerica's preferred stock rating at "A-" (Single-A-Minus) and commercial paper at Duff 1. SunAmerica is a publicly-owned specialty financial services company with total consolidated assets of $14.3 billion and shareholders' equity of $1.0 billion at June 30, 1993. Through its operating subsidiaries, SunAmerica markets fixed annuities, variable annuities, mutual funds, trust services, and investment management services. The company's profit picture has improved significantly as a result of increased fee- based revenue, net interest spread, and operating efficiencies. Fixed charge coverage and fixed charge and preferred dividend coverage was 5.6 times and 4.0 times, respectively, for the nine months ended June 30, 1993. Fixed obligation ratio was 25 percent on that date. Bonds represented 66 percent of SunAmerica's total invested assets at June 30, 1993. Below investment grade issues made up 11 percent of the bond portfolio and 71 percent of stockholders' equity. SunAmerica has out-performed the high yield market indices over the long-term. Cash and equivalents made up 13 percent and mortgage loans comprised 12 percent of total invested assets at the end of the second quarter. California properties represented 43 percent of mortgage loans. Positively for SunAmerica, property type mix and loan size compared favorably to industry averages. Apartments were over-weighted at 49 percent and offices were under-weighted at 6 percent. Average mortgage loan balance was $1.8 million. Troubled real estate made up 12 percent of the mortgage loan portfolio at June 30, 1993. This ratio compares favorably to industry peers. -0- 10/27/93 /CONTACT: Julie A. Burke, CPA, of Duff & Phelps Credit Rating Co., 312-368-3158/ (SAI)
CO: SunAmerica, Inc. ST: IN: INS SU: RTG
MP -- NY047 -- 7227 10/27/93 11:14 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Oct 27, 1993|
|Previous Article:||D&P REAFFIRMS SUN LIFE INSURANCE COMPANY OF AMERICA AND ANCHOR NATIONAL LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY AT 'AA'|
|Next Article:||DALLAS/FORT WORTH AIRPORT'S $75 MILLION JOINT REVENUES 'A+' BY FITCH -- FITCH FINANCIAL WIRE --|