A.M. Best Assigns Indicative Ratings to UnumProvident Corporation's Shelf Registration

Business Wire, Dec 28, 2004

OLDWICK, N.J. -- A.M. Best Co. has assigned indicative ratings of "bbb-" on senior debt, "bb " on subordinated debt and "bb" on preferred stock securities, which may be issued under a $1 billion shelf registration to be filed later this week by UnumProvident Corporation (UnumProvident) (NYSE: UNM) (Chattanooga, TN). A.M. Best has also assigned an issuer credit rating of "bbb-" to UnumProvident. Concurrently, A.M. Best has affirmed the existing debt ratings on the group's existing securities. UnumProvident's financial strength ratings are unaffected. All ratings have a negative outlook.

UnumProvident will file a shelf registration to potentially provide for future reducing or refinancing debt, working capital, investments in subsidiaries, financing possible acquisitions and redeeming outstanding securities. The shelf offering will also give the organization additional financial flexibility. As mentioned last month, A.M. Best expects the total debt-to-capital ratio not to exceed its current level and to trend downward over time.

UnumProvident is a specialty health and life insurance holding company, providing a broad spectrum of health and life insurance products, primarily employee benefits and supplemental health products and services, through its various subsidiaries. In November 2004, UnumProvident announced it had reached a settlement agreement with regards to its ongoing multi-state market conduct exam, pending the approval of at least two-thirds of the participating states. On December 21, 2004, UnumProvident announced that it had obtained the required number of approvals to enact the agreement. A.M. Best views this as a positive step in the process; however, it will continue to monitor the impact of the settlement over the next few months.

For a complete list of UnumProvident Corporation's financial strength and debt ratings please visit http://www.ambest.com/press/122801unum.pdf.> For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debt.> For current Best's Ratings, independent data and analysis on more than 1,050 health companies and more than 130 HMO industry composites, please visit http://www.ambest.com/health/.> A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.