DFG Delphi Financial Grp., Inc.

A.M. Best Co. has assigned a debt rating of �bb+� to the forthcoming $150 million junior subordinated debentures with a scheduled maturity of 30 years to be issued by the Delphi Financial Group, Inc. (Delphi) (Wilmington, DE) [NYSE:DFG]. The rating outlook is stable. Proceeds from the current securities offering will be used to reduce outstanding debt at the revolving credit facility, which has a remaining term of less than five years. The proceeds from the credit facility were applied earlier in 2007 toward retirement of Delphi�s 2027 capital securities. The debentures will also provide more adequate support for growth opportunities at the operating company level. The debentures have a scheduled maturity of 30 years, a final maturity of 60 years, are non-callable at par for the first 10 years and are subject to a Replacement Capital Covenant (Covenant). The Covenant restricts replacement of the debentures for the first 40 years redeemable only with securities, which carry similar �equity like� characteristics. The rating reflects the intended subordination of these securities to all of Delphi�s existing and future debt obligations, including guarantees and trust preferred securities. Delphi maintains an unadjusted debt and preferred stock-to-capital ratio of approximately 23% and favorable coverage ratios. The organization�s insurance entities continue to report solid operating results. For Best�s Debt Ratings, all other Best�s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.