At Deadline.(management of Moody's Investor Service)(appointment at Employment services)(service enhancement of Banking industry)

Pensions & Investments, August, 2006

No effect on credit ratings Companies with underfunded pension plans are likely to borrow to cover the increased contributions required under pension reform legislation signed Aug. 17 by President Bush, a report from Moody's Investors Service said. The report said the borrowing should not affect credit ratings because the companies will be effectively exchanging pension-related debt for contractual debt.

Also, the law's 2008 effective date and transition provisions should generally allow companies to prepare themselves adequately for any additional funding requirements, according to the report. "The reform act will likely lead to a more direct relationship between the funding status of a company's pension plan and its required pension contributions,''...

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