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OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has upgraded the issuer credit rating (ICR) to abbb+a from abbba and affirmed the financial strength rating of B++ (Good) of Presidential Life Insurance Company (Presidential Life) (Nyack, NY). In addition, A.M. Best has upgraded the ICR to abb+a from abba of the parent company, Presidential Life Corporation (NASDAQ: PLFE). The outlook for all ratings is stable.

The rating upgrades reflect Presidential Lifeas strong capitalization, profitable earnings achieved through solid and improved investment results, along with the early stage execution of the companyas business strategy to move from a regional distributor of annuity products to a national platform.

Partially offsetting these positive ratings factors is Presidential Lifeas current concentrated market profile operating as a predominantly fixed annuity business in a limited geographic area with a narrow product offering, income volatility due to exposure to the limited partnership investment asset class and high minimum crediting rates on the companyas in-force block of business.

Despite these concerns, Presidential Lifeas outlook is reflective of managementas ability to manage the companyas investment risk profile, improving capitalization and A.M. Bestas expectation that solid operating performance will be sustained over the near to medium term and will contribute to organic surplus growth as the company starts the execution of growth objectives.

The company is well positioned at the current ratings. Positive rating actions may occur if the company can develop a more diversified liability structure and continue to produce positive operating earnings without extraordinary items. Downward rating actions could occur if negative results in Presidential Lifeas operations put into question the viability of its expansion to a national platform while creating a materially negative change in capitalization or operating performance.

The methodology used in determining these ratings is Bestas Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestas rating process and contains the different rating criteria employed in the rating process. Bestas Credit Rating Methodology can be found at [ http://www.ambest.com/ratings/methodology. ]

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].

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