A.M. Best Downgrades Ratings of SBLI USA Mutual Life Insurance Company, Inc. and Its Subsidiary

A.M. Best has downgraded the financial strength rating to B++ (Good) from A-
(Excellent) and issuer credit ratings to "bbb" from "a-" of SBLI USA Mutual Life
Insurance Company, Inc. (SBLI USA) (New York, NY) and its wholly owned
subsidiary, S.USA Life Insurance Company, Inc. (S.USA) (Phoenix, AZ). The two
companies are collectively referred to as the SBLI USA Group. The outlook for
all ratings has been revised to negative from stable. S.USA supports SBLI USA`s
geographic expansion efforts outside of New York State.

While acknowledging the group`s consolidated risk-adjusted capitalization as
measured by Best`s Capital Adequacy Ratio (BCAR) currently remains sufficient
relative to its current business and investment risks, the substantial decline
in absolute capital and surplus has left the group with substantially less
excess capital and reduced its financial flexibility. Specifically, these rating
actions reflect an approximately 30% decline in SBLI USA Group`s absolute
capital and surplus in 2008 and through first quarter 2009, principally due to
investment losses triggered by the current credit market turmoil and the
continued weakening of the economic environment.

The rating actions further consider A.M. Best`s view that the group`s absolute
and risk-adjusted capital positions remain at risk for additional impairments,
should the current credit market environment and general economic conditions
further deteriorate. SBLI USA Group`s fixed income portfolio is currently
exposed to a substantial gross unrealized loss position-more than two times
total capital and surplus. This gross unrealized loss position is concentrated
primarily in its sizeable portfolio of mortgage-backed securities-both
commercial and residential with exposure to the Alt-A and subprime residential
markets-as well as its investments in financial sector corporate bonds.

SBLI USA has invested in highly rated tranches and has conducted extensive
stress-testing of its mortgage-backed securities portfolio under a variety of
economic scenarios. Currently, all mortgage-backed securities are paying
interest and principal. However, A.M. Best believes that these holdings along
with SBLI USA`s direct investments in commercial mortgage loans and limited real
estate partnerships represent a significant investment concentration. A.M. Best
expects rising defaults industry-wide as the United States navigates through the
current economic climate.

SBLI USA`s ratings reflect its strong brand name recognition in New York its
diverse distribution strategy and ordinary life product portfolio, continuing
geographic expansion efforts outside New York and overall positive operating
performance.

Offsetting these positive rating factors is A.M. Best`s belief that SBLI USA may
be challenged going forward to sustain and improve its operating performance.
Expense associated with expected new business growth, the challenges of the
continuing low interest rate environment and costs associated with its
geographic expansion efforts may continue to dampen earnings. Furthermore, A.M.
Best believes the company may continue to be challenged to successfully execute
its marketing initiatives given the potential impact of the current economic
climate on SBLI USA`s target customer base in the moderate income market and the
intense competition from larger life insurers and other financial services
companies.

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.



A.M. Best Co.
Analysts
Steven Faulks, 908-439-2200, ext. 5035
steven.faulks@ambest.com
or
Thomas Rosendale, 908-439-2200, ext. 5201
thomas.rosendale@ambest.com
or
Public Relations
Jim Peavy,908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow,908-439-2200, ext. 5378
rachelle.morrow@ambest.com

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