A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Lyndon Property Insurance Company (Lyndon Property) (St. Louis, MO). The outlook for both ratings is stable. The ratings of Lyndon Property reflect its solid capitalization, historically favorable underwriting results in its core business of vehicle extended service contracts and the explicit and implicit support provided by its ultimate parent, Protective Life Corporation (Protective) [NYSE: PL]. These ratings also recognize the recent rebound in automobile sales and Lyndon Property’s substantially reduced exposure to discontinued lines of business. These positive rating factors are offset by the inherent risks associated with Lyndon Property’s diversification into new markets and distribution channels and the increased loss severity in its recreational vehicle book of business. Factors that could lead to positive rating actions for Lyndon Property would be stabilized operating profitability, sustaining supportive risk-adjusted capital and becoming more strongly affiliated with or gaining more importance to Protective. Negative rating actions could occur if the company’s risk-adjusted capital and/or operating performance fall markedly short of A.M. Best’s expectations, any sudden change in parental commitment, as well as deterioration of earnings, heightened financial leverage or lower interest coverage ratios at Protective. The methodology used in determining these ratings is Best’s Credit Rating Methodology , which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.