quote.bloomberg.com
Conseco Falls 23% After Moody's Cuts Bond Ratings to Junk
Carmel, Indiana, April 20 (Bloomberg) -- Conseco Inc., a life insurer reeling from its foray into consumer lending, plunged 23 percent after its credit rating was cut to ``junk' by Moody's Investors Service.
Shares of Conseco dropped 1 9/16, or 23 percent, to an eight-year low of 5 5/16 after Moody's lowered its rating on Conseco's bonds to ``Ba1' from ``Baa3.' Many investors can't buy bonds rated below ``Baa3,' the lowest investment-grade rating.
Moody's lowered its ratings on $9 billion of Conseco bonds, including subordinated debt and trust-preferred securities, said the firm. The ratings are under review for further downgrade, Moody's said.
Conseco, based near Indianapolis in Carmel, Indiana, will have trouble raising money in the financial markets, after its March 31 announcement of plans to sell its consumer lending unit at a loss, Moody's said.
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They might as well have rated them "SHIT", better reflecting the present state of the company.
Best,
B |
