| AM Best Assigns Rating to Forthcoming Debt to Be Issued By the ...
OLDWICK, N.J.--(BUSINESS WIRE)--June 6, 2007--A.M. Best Co. has assigned an indicative rating of "bbb" to the forthcoming perpetual subordinated capital securities to be issued by the Society of Lloyd's (the Society) (United Kingdom). The outlook for the rating is positive, in line with the outlook of the issuer credit rating (ICR) on the Society. The rating of the debt issue reflects its subordination to payments in respect of the insurance liabilities of insolvent members, the existing subordinated loan notes (issued in 2004) and other unsecured senior obligations of the Society. A.M. Best anticipates that the securities will replace the annual syndicate loans in Lloyd's capital structure. This is likely to lower the cost of mutuality for the syndicate's members, whilst providing a stable resource to the Society that does not fluctuate with the insurance cycle and market capacity.
AM Best Upgrades Ratings of the Mutual of Omaha Companies; Revises ...
OLDWICK, N.J.--(BUSINESS WIRE)--June 6, 2007--A.M. Best Co. has upgraded the financial strength rating (FSR) to A+ (Superior) from A (Excellent) and issuer credit ratings (ICR) to "aa-" from "a+" of Mutual of Omaha Insurance Company (Mutual) and its subsidiary, United of Omaha Life Insurance Company (United of Omaha). Concurrently, A.M. Best has upgraded the FSR to A+ (Superior) from A (Excellent) and assigned ICRs of "aa-" to Companion Life Insurance Company (Lynbrook, NY) and United World Life Insurance Company. Additionally, A.M. Best has upgraded the debt rating to "a" from "a-" on Mutual's $300 million 6.8% surplus notes, due 2036. The outlook for all ratings has been revised to stable from positive. All companies (collectively referred to as Mutual of Omaha) are located in Omaha, NE unless otherwise specified.
Two-Year Treasury Yield Increases to 9-Month High of 5 Percent
June 5 (Bloomberg) -- The two-year Treasury note's yield touched 5 percent for the first time since August after an unexpected gain in a gauge of service industries prompted traders to undo bets that the Federal Reserve will cut interest rates. Traders who a month ago were convinced the Fed would lower its target for the overnight lending rate between banks at least once by year-end now see almost no chance of that happening, interest-rate futures yields show. Goldman Sachs Group Inc. economists said today that they no longer expect the central bank to lower borrowing costs this year. The market is ``still in the throes of taking out the Fed -- what remains of ease hopes -- and starting to replace it with talk of tightening,'' said Richard Gilhooly, an interest-rate strategist at BNP Paribas Securities Corp.
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