Fitch Affirms Unum Group Ratings

Fitch affirmed the Chattanooga, Tenn.-based company's issuer default rating at "BBB." Fitch also affirmed $1.8 billion of debt outstanding in the form of notes with varying interest rates and maturity dates at "BBB-."

Unum has successfully diversified its business, with a higher proportion of sales now coming from the United Kingdom and from worksite products, Fitch said.

"Balance sheet risk has been reduced through reserve strengthening, the write-off of intangibles, and improved operating company capitalization levels," the ratings agency said. Additionally, Unum has virtually no exposure to subprime mortgages or collateralized debt obligations as of the end of 2007.

Last week, Unum said its fourth-quarter profit fell 42 percent, hurt by one-time costs related to investment losses and debt extinguishment, but adjusted earnings beat analyst expectations.

Unum shares rose 9 cents to $23.47 in afternoon trading.