S&P Affirms Merrill Lynch Life Ins Ratings; Outlk Neg

Business Wire, Oct 2, 1998

NEW YORK--(BUSINESS WIRE)--S&P's CreditWire 10/2/98--Standard & Poor's today affirmed its double-'A'-minus financial strength and counterparty credit ratings on Merrill Lynch Life Insurance Group (see list below).

The outlook is negative.

The outlook reflects the potential for continued low trading volumes and illiquidity in important trading markets for its parent, Merrill Lynch & Co. Inc. Standard & Poor's is concerned about an extended period of weak business volumes and the potential for attendant illiquidity. Recent events suggest that investor and issuer confidence may continue to be affected by volatile markets and heightened counterparty credit risk. At the same time, adverse market linkages have hurt earnings despite apparent diversification across geographic and product markets. Merrill Lynch Life's counterparty and financial strength ratings are reflective of the core relationship between Merrill Lynch Life and Merrill Lynch & Co. Inc.

OUTLOOK: NEGATIVE

If adverse market trends continue for Merrill Lynch & Co. Inc., they could have an impact on the ratings of Merrill Lynch Life. An outlook indicates the potential direction of a rating over the medium term, usually a one-to-three year time frame, Standard & Poor's said. --CreditWire

OUTSTANDING RATINGS AFFIRMED
                                        Rating
Merrill Lynch Life Insurance Co.
Counterparty credit rating                AA-
Financial strength rating                AA-
ML Life Insurance Co. of NY
Counterparty credit rating                AA-
Financial strength rating                AA-
Merrill Lynch Life Insurance Co.
-  RateMax Product Series
Counterparty credit rating                AA-