|
|
发表于 2009-12-17 10:11 PM
|
显示全部楼层
Here is the reason:
PRESS RELEASE: S&P Raises To 'B-', Takes Off CreditWatch Rtg On Conseco Inc.
--------------------------------------------------------------------------------
Thu Dec 17 08:47:27 2009 EST
The following is a press release from Standard & Poor's:
-- Conseco Inc.'s financial flexibility has improved following an equity
raise with net proceeds of about $200 million and the amendment of bank
covenants to push the company's debt obligations out over the next several
years.
-- As a result, we have raised the rating on the holding company to 'B-'
from 'CCC' and removed it from CreditWatch positive.
-- In addition, we have assigned 'BB-' counterparty credit and financial
strength ratings to Washington National Insurance Co. (WNIC).
-- The stable outlook reflects our expectation that Conseco will maintain
a cushion above its amended covenants.
NEW YORK (Standard & Poor's) Dec. 17, 2009--Standard & Poor's Ratings Services
said today that it raised its counterparty credit rating on Conseco Inc. to
'B-' from 'CCC' and removed it from CreditWatch, where it was placed on Dec.
11, 2009, with positive implications.
Standard & Poor's also said that it assigned its 'BB-' counterparty
credit and financial strength ratings to Washington National Insurance Co.
(WNIC). (WNIC is the product of a merger of Conseco Insurance Co. and Conseco
Health Insurance Co., which we expect to be completed by first-half 2010.)
The outlook on both these companies is stable.
The Conseco upgrade follows the pricing and marketing of its equity
offering. This rating action returns the differential between the financial
strength ratings on Conseco's insurance companies and the counterparty credit
rating on the holding company to the standard three notches. "We raised the
rating to reflect the company's significantly improved financial flexibility
following this offering, recent amendments to bank covenants in its credit
facility, and the convertible debt restructuring in October 2009," explained
Standard & Poor's credit analyst Kevin G. Maher.
Conseco plans to use $150 million raised from the equity offering plus
50% of the net proceeds in excess of $200 million to repay debt, with the
remainder for general corporate purposes. We believe that the revision of the
debt covenants and the equity raise will reduce the company's financial
strains until 2013.
We consider Conseco's risk-based capitalization to be a weakness of the
rating, in particular with double leverage reducing total adjusted capital.
However, following the contribution of funds from the equity raise to pay-down
some existing debt, it should improve and become supportive of the rating.
We consider the group's competitive position adequate, and its operating
performance is improving. Offsetting these positive factors are Conseco's weak
capitalization and poor enterprise financial controls.
The outlook is stable. Although the current rating anticipates that
Conseco will maintain a cushion above its covenants, the cushion should
improve following the amendments to the covenants, particularly the NAIC
risk-based capitalization requirement.
The amendments to the bank covenants and the raising of both private and
public equity funds improve the holding company's liquidity, but Conseco will
continue to have modest financial flexibility because of limitations on
dividends from the operating companies. Further significant investment
write-downs or deterioration in the insurance subsidiaries' operating
performance could cause the company to breach its covenants. If GAAP operating
earnings decline or if financial flexibility decreases, we would likely lower
all of the ratings.
RELATED RESEARCH
-- "Holding Company Analysis," June 11, 2009.
-- "Interactive Ratings Methodology," April 22, 2009.
Complete ratings information is available to RatingsDirect on the Global
Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect
subscribers at www.ratingsdirect.com. All ratings affected by this rating
action can be found on Standard & Poor's public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left
column.
Primary Credit Analyst: Kevin G Maher, New York (1) 212-438-7228;
kevin_maher@standardandpoors.com
Secondary Credit Analyst: Jon Reichert, New York (1) 212-438-7234;
jon_reichert@standardandpoors.com
Analytic services provided by Standard & Poor's Ratings Services
(" Ratings Services ") are the result of separate activities designed
to preserve the independence and objectivity of ratings opinions. The credit
ratings and observations contained herein are solely statements of opinion and
not statements of fact or recommendations to purchase, hold, or sell any
securities or make any other investment decisions. Accordingly, any user of
the information contained herein should not rely on any credit rating or other
opinion contained herein in making any investment decision. Ratings are based
on information received by Ratings Services. Other divisions of
Standard & Poor's may have information that is not available to Ratings
Services. Standard & Poor's has established policies and procedures to
maintain the confidentiality of non-public information received during the
ratings process.
Ratings Services receives compensation for its ratings. Such compensation is
normally paid either by the issuers of such securities or third parties
participating in marketing the securities. While Standard & Poor's reserves
the right to disseminate the rating, it receives no payment for doing so,
except for subscriptions to its publications. Additional information about
our ratings fees is available at www.standardandpoors.com/usratingsfees.
Copyright (c) 2009, Standard & Poor's Financial Services LLC,
a subsidiary of The McGraw-Hill Companies, Inc.
Click here to go to Dow Jones NewsPlus, a web front page of today's most
important business and market news, analysis and commentary:
http://www.djnewsplus.com/nae/al ... BmPc1KAQHJEQ%3D%3D. You can use
this link on the day this article is published and the following day.
(END) Dow Jones Newswires
12-17-09 0847ET |
|
狗仔卡
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡