Fitch Expects to Rate Unum Group’s $250MM Senior Debt Offering ‘BBB’

Business Wire, Inc.

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings expects to assign a 'BBB' rating to (NYSE: UNM) planned $250 million 5.75% senior notes issuance due Aug. 15, 2042.

The new shares' rating will be equivalent to the ratings on UNM's existing senior debt. The net proceeds will be used for general corporate purposes. The offering is expected to close Aug. 23, 2012.

At June 30, 2012, UNM's financial leverage was 23% and GAAP earnings-based interest coverage was approximately 10x. Pro forma financial leverage increases to approximately 25%.

On Aug. 3, 2012, Fitch affirmed all of its ratings for UNM and UNM's subsidiaries with a Stable Outlook.

Fitch currently rates the UNM entities as follows:

Unum Group Inc.

--Issuer Default Rating (IDR) at 'BBB+';

--7.125% senior notes due Sept. 30, 2016 at 'BBB';

--7% senior notes due July 15, 2018 at 'BBB';

--5.625% senior notes due Sept. 15, 2020 at 'BBB';

--7.25% senior notes due March 15, 2028 at 'BBB';

--6.75% senior notes due Dec. 15, 2028 at 'BBB';

--7.375% senior notes due June 15, 2032 at 'BBB'.

Provident Financing Trust I

--7.405% junior subordinated capital securities at 'BB+'.

UnumProvident Finance Company plc

--6.85% senior notes due Nov. 15, 2015 at 'BBB'.

Unum Group members:

Unum Life Insurance Company of America

Provident Life & Accident Insurance Company

Provident Life and Casualty Insurance Company

The Paul Revere Life Insurance Company

The Paul Revere Variable Annuity Insurance Company

First Unum Life Insurance Company

Colonial Life & Accident Insurance Company

--IFS at 'A'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Insurance Rating Methodology' (Sept. 22, 2011).

Applicable Criteria and Related Research:

Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651018

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Fitch Ratings
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Director
Fitch, Inc.
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Secondary AnalystBruce E. Cox, +1 312-606-2316
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