S&P rates UnumProvident debentures BB+

Standard & Poor's said it assigned a BB+ rating to UnumProvident Finance Co. plc.'s $400 million 6.85% senior debentures due 2015.

The outlook is stable.

Proceeds will be used to facilitate the repatriation of foreign earnings.

S&P said the rating reflects the full and unconditional guarantee of the debentures by UnumProvident Corp., which benefits from the strong competitive position of its insurance operating companies, substantial market leadership in group and individual disability insurance and improved asset quality.

Somewhat offsetting these strengths are operating earnings - which S&P said have recently been volatile and weak relative to the rating - increased financial leverage, decreased interest coverage and marginal holding company liquidity.

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