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A.M. Best Assigns Debt Rating to Unum Groupa?s Forthcoming New Senior Notes

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^{Published in Business and Finance on Wednesday, September 8th 2010 at 13:46 GMT by Market Wire}  

OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has assigned a debt rating of abbb-a to the forthcoming $400 million 5.625% senior unsecured notes to be issued on September 15, 2010 of Unum Group (Unum) (headquartered in Chattanooga, TN) (NYSE: UNM). The rating outlook is positive.

"A.M. Besta™s Ratings & the Treatment of Debt."

Proceeds from the offering will be partially used to repay in full $225 million of 7.625% senior notes that mature March 2011, as well as for general corporate purposes.

Unum continues to be a well recognized name in the employee benefits market. Despite the weak U.S. economy, the organization has continued to report solid operating results, although it continues to be challenged in growing its core business targeted primarily to small-to-mid-sized employers. Risk-adjusted capitalization for its core insurance entities remains favorable.

The organizationa™s total debt-to-capital ratio will increase to slightly less than 25% following the debt issuance, which is well within A.M. Besta™s guidelines for the current rating. Also, A.M. Best notes that Unuma™s favorable interest coverage ratio, currently above 11 times, will decline modestly to approximately 10 times following the debt issuance.

The principal methodology used in determining these ratings is [ Besta™s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Besta™s rating process and highlights the different rating criteria employed. Additional key criteria utilized includes: a[ A.M. Besta™s Ratings & the Treatment of Debt ].a Methodologies can be found at [ www.ambest.com/ratings/methodology ].

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 ].