MOODY'S DOWNGRADES PROVIDENT RATINGS

MOODY'S DOWNGRADES PROVIDENT RATINGS

Moody's Investors Service downgraded the senior debt rating of Provident Life Capital Corp. to "A2" from "A1." Also downgraded were the financial strength ratings of subsidiary companies Provident Life and Accident Insurance Co. and Provident National Life Assurance Co. from "Aa2" to "Aa3."

The rating firm said it was concerned about the extent of the losses from the disability income business and about the earnings outlook for this line of business. However, Moody's said this outlook was mitigated by Provident's ''strong and diversified earnings" from other lines and its "adequate capital base and strong liquidity."