A.M. Best Downgrades Debt Rating of Tailwind Holdings, LLC and Places Under Review

Business Wire, June 6, 2008

OLDWICK, N.J. -- A.M. Best Co. has downgraded the debt rating to "aa" from "aaa" and placed the rating under review with negative implications on $130 million of Series A floating rate senior secured notes, due 2036 (notes) issued by Tailwind Holdings, LLC (Tailwind Holdings), a Delaware limited liability company and a wholly owned subsidiary of Unum Group (Unum) (Chattanooga, TN).

Tailwind Holdings was formed for the limited purpose of holding the stock of Tailwind Re, Inc. (Tailwind Re), issuing the notes and engaging in other activities incidental to the performance of its duties.

A.M. Best's rating takes into consideration the following: the financial strength rating of Unum; Tailwind Holdings' stand-alone rating (i.e., rating of the notes without the support of the financial guarantor) of "a-"; and the work performed by Tillinghast, a business of Towers Perrin, including analysis and review of the adequacy of the reserves, the development of the policy cash flow projections and the risk factors and assumptions used in the deal model. Consideration also was given to the review of the structure, legal documentation and regulatory environment; an analysis of the underlying cash flows and actuarial assumptions including stress testing and sensitizing of the cash flow projections of the deal model based upon A.M. Best's view of various key factors such as mortality rates, recovery rates, interest rates and investment conditions and the payment assurance of MBIA Insurance Corporation (MBIA) (Armonk, NY), the financial guarantor, which ensures the timely payment of scheduled interest and the repayment of principal at maturity to the note holders.

The downgrade and placing of the rating under review reflect A.M. Best's concern regarding the financial and operational pressures currently being experienced by MBIA as reflected in the change in its credit profile.

For access to special reports, analytical methodologies and transactions relating to structured finance, please visit http://www3.ambest.com/sfc/.> Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.