The counterparty credit rating on Nationwide Financial Services Inc. (NFS) reflects the company's very strong and diversified business profile with extensive distribution relationships, very strong capitalization, strong investment portfolio, strong fixed-charge coverage, appropriate leverage and asset/liability management controls, and improving risk-management capabilities. Partially offsetting these positive factors are somewhat volatile earnings that are at the low end of expectations for the ratings and inconsistent execution. This has resulted in underperformance, such as what occurred with the integration of the former Provident Mutual companies. NFS is a publicly traded insurance holding company that had consolidated assets of $115 billion as of Sept. 30, 2006, which were flat from those of the previous year. Subsidiaries provide financial services through the production, distribution,...
Companies mentioned in this report are: Nationwide Financial Services Inc.
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