Fitch Rates UnumProvident Finance Company plc's Senior Debentures 'BBB-'

Business Wire, Nov 8, 2005

NEW YORK -- Fitch Ratings has assigned a 'BBB-' to UnumProvident Finance Company plc's new issuance of $400 million senior debentures due Nov. 15, 2015. The rating reflects the full and unconditional guarantee by UnumProvident Corporation (NYSE:UNM). Fitch also affirmed UNM's 'BBB-' long- term issuer rating and the ratings on all outstanding debt. The Rating Outlook is Stable. The rating action affects $2.9 billion of debt outstanding.

Proceeds of the offering will be used to repatriate dividends to UNM. To maintain its current debt leverage, UNM plans to reduce its outstanding debt by an amount equal to the debt issuance during the first quarter of 2006 by participating in the remarketing of its adjusted conversion rate equity units in February 2006.

UNM's pro forma equity-adjusted leverage at Sept. 30, 2005 was 26.2% and was within rating expectations. GAAP EBIT fixed-charge coverage was 4.6 times (x) through the first six months of 2005.

Based in Chattanooga, Tennessee, UnumProvident Corp. is the largest provider of group and individual income protection insurance in the U.S. and the U.K. Total assets and shareholders' equity were $52.4 billion and $7.9 billion at June 30, 2005.

The following actions have a Stable Rating Outlook by Fitch:

UnumProvident Finance Company plc,

--6.85% senior notes due Nov. 15, 2015 assigned 'BBB-'.

UnumProvident Corp.

--Long-term issuer affirmed at 'BBB-';

--7.625% notes due March 1, 2011 affirmed at 'BBB-';

--7.0% notes due July 15, 2018 affirmed at 'BBB-';

--7.25% notes due March 15, 2028 affirmed at 'BBB-';

--6.75% notes due Dec.15, 2028 affirmed at 'BBB-';

--7.375% notes due June 15, 2032 affirmed at 'BBB-';

--7.25% notes due June 15, 2032 affirmed at 'BBB-';

--8.25% adjustable conversion equity units affirmed at 'BB '.

Provident Financing Trust I

--7.405% junior subordinated capital securities affirmed at 'BB '.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria, and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance, and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.