Fitch Upgrades Pacific Life Re Limited Following Acquisition's Close

CHICAGO--(Business Wire)--
Fitch Ratings has upgraded the insurer financial strength (IFS)
rating of Pacific Life Re Limited (PLR), formerly known as Scottish Re
Limited, to 'A' from 'BB' following the close of its recent
acquisition by Pacific LifeCorp (PLC). The Rating Outlook is Stable.

The upgrade of PLR's rating is based on a guarantee agreement in
place between PLR and PLC. In the agreement, obligations of PLR align
with senior unsecured obligations of PLC. Fitch rates the senior debt
issued by PLC at 'A'.

The acquisition and near-term earnings contribution of PLR within
the overall Pacific Life organization is relatively small. PLC
maintains a very strong balance sheet, including modest financial
leverage and very strong operating capital quality. Further, the
company continues to maintain a high-quality asset portfolio,
extensive liquidity and good asset/liability management. The company's
asset portfolio has not been meaningfully affected by the subprime
mortgage market.

Fitch's ratings concerns for PLC include the increase in variable
annuity assets under management which create equity market exposures
related to various benefit guarantees, interest rate exposure, and the
company's ability to continue stable growth in earnings in its
aircraft leasing operation.

PLC is the intermediate holding company of Pacific Mutual Holding
company, a mutual insurance holding company formed in 1997. In
addition to PLR, PLC's other major subsidiaries include Pacific Life
Insurance Company, Pacific Life and Annuity Insurance Company, and
Aviation Capital Group.

The following rating is upgraded with a Stable Outlook:

Pacific Life Re Limited (previously known as Scottish Re Limited)

--IFS to 'A' from 'BB'.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, Chicago
Peter F. Patrino, CFA, 312-368-3266
Douglas L. Meyer, CFA, 312-368-2061
or
Media Relations:
Sandro Scenga, 212-908-0278, New York

Copyright Business Wire 2008