Assigns Debt Ratings
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OLDWICK, N.J.--(BUSINESS WIRE)--June 23, 2003--A.M. Best Co. has
affirmed the financial strength ratings of A++ (Excellent) of Teachers
Insurance and Annuity Association of America (TIAA) and its insurance
operating subsidiary, TIAA-CREF Life Insurance Company (both located
in New York, NY). Concurrently, A.M. Best has assigned an "aaa"
long-term debt rating to the notes issued by TIAA Global Markets Inc.
(TGM). A.M. Best has also assigned an AMB-1+ rating to TIAA's $2
billion commercial paper program. The outlook for all ratings is
stable.
The rating affirmation reflects TIAA's strategic advantage due to
its leadership position for providing high-quality, low-cost pension,
investment and life insurance products and services, mainly to members
of higher education, research and many not-for profit organizations.
The rating also recognizes the company's positive operating
earnings performance, superior capitalization, well diversified
investment portfolio and the steady success in growing ancillary
business lines, including trust services and tuition financing plans.
These strengths are derived from TIAA's focus on operating strategy,
conservative accounting and reserving methodologies and an experienced
management team. Partially offsetting these strengths is the challenge
TIAA will face in managing its historical growth rate while
maintaining the industry standard for low expenses. The company is
reviewing several initiatives to address these challenges while
focusing on new business growth through its traditional annuity and
life insurance segments.
TIAA maintains a considerably higher exposure to real estate and
alternative investment classes than most of the U.S. life insurance
industry. However, the company has a very stable liability structure
that balances its overall risk profile.
TIAA continues to maintain considerable latitude in managing its
capital base, particularly given its stable liabilities and ability to
adjust policyholder crediting and dividend rates.
The financial strength rating of A++ (Superior) has been affirmed
for the following:

-- Teachers Insurance and Annuity Association of America

-- TIAA-CREF Life Insurance

The following debt ratings have been assigned:

Teachers Insurance and Annuity Association of America--

-- AMB-1+ on $2 billion commercial paper program

TIAA Global Markets, Inc.--

-- "aaa" on $750 million 3.875% senior notes, due 2008

-- "aaa" on $300 million floating senior notes, due 2006

-- "aaa" on $200 million 2.75% senior notes, due 2006

-- "aaa" on $500 million 4.125% senior notes, due 2007

-- "aaa" on $500 million 5.00% senior notes, due 2007

A.M. Best Co., established in 1899, is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit A.M. Best's Web site at www.ambest.com.