Standard & Poor's Revises CreditWatch Status of MONY Life Insurance Co.

Strategic Insights -

Standard & Poor's Ratings Services revised the CreditWatch status of its ratings on MONY Life Insurance Co. and its affiliates to positive, citing the successful shareholder vote to approve the company's proposed acquisition by AXA Financial Inc. This action eliminates the greatest obstacle to the merger, which is now expected to be completed around the end of the second quarter. The ratings were initially placed on CreditWatch in February due to concerns about MONY's weak 2003 earnings and uncertainty about the acquisition's completion.

Key Takeaways:

  • Standard & Poor's revised the CreditWatch status of its 'A' counterparty credit and financial strength ratings on MONY Life Insurance Co. and MONY Life Insurance Co. of America to positive from developing.
  • The ratings were initially placed on CreditWatch on February 19, 2004, due to concerns about MONY's weak 2003 earnings and uncertainty about the acquisition's completion.
  • The successful shareholder vote to approve the proposed acquisition by AXA Financial Inc. eliminated the greatest obstacle to the merger.
  • All of the ratings on the group are expected to be raised by one notch to within one notch of the ratings on AXA group upon completion of the acquisition.
  • The merger is expected to be completed around the end of the second quarter.

Statistics:

  • CreditWatch status revised on May 18, 2004.
  • CreditWatch status originally placed on February 19, 2004.
  • MONY's 2003 earnings reported as weak.
  • Acquisition by AXA Financial Inc. expected to be completed by the end of the second quarter (Q2 2004).

Sources:

  • Business Editors NEW YORK--(BUSINESS WIRE)--May 18, 2004 Credit Rating: BBB/Watch Pos/A-2
  • www.standardandpoors.com Credential: standardandpoors.com press release