May 12, 2010

Research Update:

MetLife Inc. And Related Ratings Remain On CreditWatch Negative
Primary Credit Analyst: Shellie Stoddard, New York (1) 212-438-7244; Secondary Credit Analyst: Kevin Ahern, New York (1) 212-438-7160;

Table Of Contents
Overview Rating Action Rationale CreditWatch Related Criteria And Research Ratings List

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was strong at $1. • We are maintaining all global-scale ratings on MetLife and its subsidiaries on CreditWatch with negative implications. Standard & Poor's believes access to dividends from Alico will be limited for the first one to two years following the acquisition. though it improved modestly as of year end 2009. And Related Ratings Remain On CreditWatch Negative Overview • Standard & Poor's has applied updated incremental stress factors within its U. MetLife's unrestricted cash fixed-charge coverage ratio (which we project at 2. Standard & Poor's updated incremental asset stress analysis had a neutral impact on our view of MetLife's capital adequacy. (NYSE:MET) and most subsidiaries. (Alico) from AIG. Rating Action On May 12. Standard & Poor's Ratings Services said that its ratings on MetLife Inc.Research Update: MetLife Inc. 2010. operating companies. The acquisition financing plan includes using $1. The transaction has the potential to affect MetLife's capital and holding-company metrics. We acknowledge that the Alico transaction will improve debt leverage and Standard & Poor’s | RatingsDirect on the Global Credit Portal | May 12. while financial leverage was 36% of total capital.S.39 billion and within our expectations. • Under MetLife's plan for financing its proposed acquisition of American Life Insurance Co.S. where they were placed on Feb 3. Rationale We placed the ratings on CreditWatch following MetLife's agreement with American International Group Inc. MetLife's adjusted EBIT for the three months ended March 31. MetLife's debt leverage was 26%. 2010. insurance capital adequacy model. the updated incremental asset stress analysis had a neutral effect on our view of the group's capital adequacy. excluding the Alico transaction. 2010 2 798555 | 300009338 . As of March 31. (AIG) to acquire AIG's international life insurance subsidiary: American Life Insurance Co. (Alico). Standard and Poor's expects the capital deficiency to persist because dividends from the operating companies will likely be required in 2011 to cover fixed charges. with negative implications.4x in 2010) could decline to less than 2x if MetLife is unable to access earnings and excess capital in Alico and its subsidiaries through the early stages of integration. are remaining on CreditWatch. 2010. • We believe MetLife's capitalization remains deficient for the rating.75 billion of holding-company cash and servicing incremental debt and hybrids that will likely be dependent on dividends from U. 2010. We project GAAP fixed-charge coverage of more than 5x in 2010. including the 'A-' long-term counterparty credit rating on MetLife.

K. • "Use Of CreditWatch And Outlooks. 2009. We consider it unlikely at this time that we would lower our ratings by more than one notch. 2010. And Related Ratings Remain On CreditWatch Negative GAAP fixed-charge coverage. We also recognize the value of global diversification that the ALICO organization will contribute to MetLife prospectively. www. In addition. and if MetLife has unrestricted sources of cash fixed-charge coverage that exceed 2x interest and dividend payments on total debt and hybrid securities. We expect to resolve the CreditWatch status of the ratings upon the completion of the transaction." Dec. and we intend to update our analysis in the meantime. 14. The Conference ID is 7623938. As we complete our review of this transaction. lower-risk business profile to MetLife. we will focus on MetLife's ability to generate sufficient earnings and cash flows to rebuild capital adequacy and comfortably service its fixed charges. and the dial-in number for participants everywhere else is (1) 210-795-1098. we expect consolidated capitalization to return to levels consistent with the rating within one year. given the decapitalization of consolidated companies. The announced transaction would result in capitalization below our expectations for the ratings. Ratings List Ratings Remaining On CreditWatch MetLife Inc.S. CreditWatch We likely will lower our ratings on MetLife by one notch after the acquisition closes. Insurers. However. 2009. EDT to discuss both MetLife and the broader issues affecting North American life insurers' investment portfolios. Our concerns relate to cash constraints that could present themselves over the next one to two years following the transaction. in our opinion. we likely will lower our ratings if." April 12. if. Standard & Poor's will hold a teleconference on May 13. as announced." June 11. Callers in the U. we likely would affirm the current ratings. • "Methodology For Incorporating Incremental Stress Factors Into The Capital Adequacy Analysis Of U. Related Criteria And Research • "Analysis Of Insurer Capital Adequacy. which likely will occur in the fourth quarter of 2010. the transaction causes the unrestricted cash fixed-charge coverage ratio to fall below 2x. following the close of the transaction.m. 2009. with key market positions in Japan and Eastern European countries that complement MetLife's current international footprint. Alico will contribute a higher-margin. 18.Research Update: MetLife Inc. and the passcode is LIFE. should dial (44) 20-7108-6248. Alico's size points to significant execution risks. at 11:00 3 798555 | 300009338 . However. 2010. • "Holding Company Analysis." Sept. Our discussions with management will also review how MetLife will manage and mitigate the operational and cultural integration of ALICO.standardandpoors.

Research Update: MetLife Inc. General American Life Insurance Co. Counterparty Credit Rating Local Currency Metropolitan Life Insurance Co. of Connecticut General American Life Insurance Co. New England Life Insurance Co. of Connecticut Counterparty Credit Rating Local Currency First MetLife Investors Insurance Co. New England Life Insurance Co. 2010 4 798555 | 300009338 . MetLife Insurance Ltd. Counterparty Credit Rating Local Currency Financial Strength Rating Local Currency MetLife Inc. MetLife Insurance Ltd. And Related Ratings Remain On CreditWatch Negative Long-term Counterparty Credit Rating Local Currency First MetLife Investors Insurance Co. MetLife Insurance Co. MetLife Europe Ltd Financial Strength Rating Local Currency MetLife Taiwan Insurance Co. MetLife Investors Insurance Co. MetLife Investors USA Insurance Co. MetLife Investors Insurance Co. Senior Unsecured Junior Subordinated Preferred Stock A-/Watch Neg AA-/Watch Neg/-- AA-/Watch Neg/-- A+/Watch Neg/-- A+/Watch Neg/-- twAA-/Watch Neg/-- --/Watch Neg/A-1+ AA-/Watch Neg/A-1+ AA-/Watch Neg/A-1+ A-/Watch Neg BBB/Watch Neg BBB-/Watch Neg Standard & Poor’s | RatingsDirect on the Global Credit Portal | May 12. Financial Strength Rating Local Currency MetLife Assurance Ltd. Ltd. MetLife Investors USA Insurance Co. Counterparty Credit Rating Local Currency MetLife Assurance Ltd. Counterparty Credit Rating Local Currency Metlife Funding Inc. MetLife Insurance Co.

ratingsdirect.Research Update: MetLife Inc. Subordinated A/Watch Neg Met Life Institutional Funding I LLC MetLife Reinsurance Company of Charleston Senior Secured AA-/Watch Neg MetLife Capital Trust IV MetLife Capital Trust X Preferred Stock MetLife Short Term Funding LLC Metlife Funding 5 798555 | 300009338 . Use the Ratings search box located in the left and RatingsDirect subscribers at Metropolitan Life Insurance www. And Related Ratings Remain On CreditWatch Negative General American Life Insurance Co.standardandpoors. Senior Secured AA-/Watch Neg Complete ratings information is available to RatingsDirect on the Global Credit Portal subscribers at www. All ratings referenced herein can be found on Standard & Poor's public Web site at www. Commercial Paper BBB/Watch Neg A-1+/Watch Neg MetLife of Connecticut Global Funding I Metropolitan Life Global Funding I MetLife of Connecticut Institutional Funding Ltd.globalcreditportal.standardandpoors.

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