A.M. Best Assigns Debt Rating to UnumProvident's New Senior Notes

Business Wire, Nov 8, 2005

OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb-" to the senior unsecured notes to be issued by UnumProvident Finance

Company, plc, a wholly-owned U.K. subsidiary of UnumProvident Corporation (UnumProvident) (NYSE: UNM) (Chattanooga, TN). UnumProvident will issue a 10-year, 6.85% $400 million note, of which the proceeds will be utilized as part of a repatriation dividend of up to $450 million during the fourth quarter 2005. The rating outlook is negative.

As part of the repatriation plan, UnumProvident Finance Company, plc, will issue a 10-year note in a private offering, which is fully and unconditionally guaranteed by UnumProvident and its U.K. holding company. The proceeds from the repatriation will be utilized to reduce its outstanding debt by the amount equal to the debt issuance during the first quarter of 2006 by participating in the remarketing of its mandatory convertible securities in February 2006. Consequently, A.M. Best anticipates UnumProvident will continue to reduce its debt-to-capital ratio in 2006, after a modest increase immediately following the offering.

UnumProvident's issuer credit, financial strength and existing debt ratings are unchanged by this debt issuance.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> For current Best's Ratings, independent data and analysis on more than 1,050 health companies and A.M. Best groups, please visit 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 www.ambest.com.