Fitch Ratings Inc. affirmed its commercial mortgage-backed
securities ("CMBS") primary servicer rating of 'CPS3+', master
servicer rating of 'CMS3', and special servicer rating of 'CSS3+'
on Protective Life Insurance Company, an operating subsidiary of
Protective Life Corporation
). The ratings take into account the agency's assessment of the
company's seasoned and tenured management team and stable servicing
The primary servicer rating affirmations came on the back of the
company's ability to service loans especially the CMBS-related
transactions. The master servicer rating was backed by the
subsidiary's efficiency in examining correspondence and the overall
liquidity position of the parent company. Protective Life reported
a cash balance of $219.88 million as on June 30.
Finally, the special servicer rating was affirmed on the basis
the company's management skills and capability, manifested in its
managing of its non-performing commercial real estate loans.
Protective Life's servicing portfolio included 2,057 loans at
second quarter end with an outstanding principal balance amounting
to $5.2 billion. Of this, 263 loans were CMBS whose total worth was
The company, as on June 30 had seven special servicer loans, two
of which were CMBS loans. The principal balance still remaining
unpaid on the CMBS loans, amounted to $7 million. Protective Life,
as on that date, was specially servicing 13 real estate owned (REO)
properties, one of which came under CMBS worth $0.5 million.
In a separate development, Moody's Investor Services assigned
its subordinated debt rating of Baa3 (hyb) on the company with a
stable outlook, Reuters reported. Total debt in the books of the
company as on June 30 was $1.51 billion, crawling up 1% over the
Rating affirmations or upgrades from credit rating agencies play
an important part in retaining investor confidence in the stock as
well as maintaining creditworthiness in the market. The company
scores strongly with the rating agencies. We believe, strong
ratings scores will help retain investor confidence and help it
write more businesses going forward, thereby augmenting the
Protective Life's peer,
Reinsurance Group of America Inc.
) also received ratings from A.M. Best Co. They affirmed a debt
rating of "bbb+" with a stable outlook. The rating follows the
company's recent issue of 6.2% fixed-to-floating subordinated
debentures worth $400 million, slated to mature in 2042.
Protective Life carries a Zacks #3 Rank that translates into a
short-term Hold rating. Its peer, Reinsurance Group also shares the
same Zacks #3 Rank with the company.
PROTECTIVE LIFE (PL): Free Stock Analysis
REINSURANCE GRP (RGA): Free Stock Analysis
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