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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: brad greene who wrote (13505)	7/1/2000 7:04:18 AM
From: Mr. Pink	Read Replies (4) \| Respond to of 18998

Who are you, bufoon, to come to this hallowed ground and speak thusly to Mr. P$nk? Minions, inform this dullard to whom he speaks. Bow and beg forgiveness. As for the wires, He hopes, in His infinite compassion that you read the Moody's downgrade which, because He is generous, just, kind and all-knowing, He will share with you here. Note that whilst the fools, yahoos, morons and unbathed were celebrating and marking the stock up for quarter end, bonds dropped 6%. CONSECO & AFFILIATES' CREDIT RTGS DOWNGRADED (SR TO Baa3) (CNC) 6/30/0 12:57 (New York) New York New York Patrick Finnegan Edward Young Senior Vice President Managing Director Financial Institutions Group Financial Institutions Group Moody's Investors Service Moody's Investors Service JOURNALISTS: (212) 553-0376 JOURNALISTS: (212) 553-0376 SUBSCRIBERS: (212) 553-1653 SUBSCRIBERS: (212) 553-1653 MOODY'S DOWNGRADES CREDIT RATINGS OF CONSECO AND AFFILIATES (SENIOR DEBT TO Ba3); RATING AGENCY EXPRESSES CONCERNS OVER COMPANY'S FINANCIAL FLEXIBILITY Approximately $9 Billion of Debt Securities Affected. New York, June 30, 2000 -- Moody's Investors Service has downgraded the credit ratings of Conseco, Inc. and its affiliates (senior debt rating to Ba3 from Ba1). The ratings remain on review -- direction uncertain -- pending further reports from Conseco about the sale of its finance unit and its efforts to refinance its bank obligations due in September 2000. The downgrade primarily reflects Moody's view that the company's financial flexibility over the next 3 months will become increasingly tied to whether it reaches a definitive agreement to sell its finance unit or refinance certain obligations coming due in September 2000. Moody's stated that it believes Conseco has less financial flexibility over the near term compared with the company's financial position at the time of Moody's last rating action -- April 20, 2000. The rating agency said that it has become more difficult to sell finance company assets in recent months. At a minimum, Conseco must recover the value of its intercompany loan in order for Moody's to maintain a senior unsecured debt rating in the Ba category. Moreover, Moody's believes that a comprehensive restructuring of the company's capital has become essential to its future viability. The rating agency believes a restructuring involving some combination of additional equity contributions and an exchange or reduction of indebtedness is needed to lighten the burden of debt service requirements on the insurance subsidiaries. Moody's emphasized that a protracted sales process for the finance unit heightens concerns about Conseco' financial flexibility and raises the risk for Conseco that it may lose the confidence of its insurance distribution channels. Moody's considers the appointment of Gary Wendt as Chairman and Chief Executive Officer of Conseco a positive development, but his appointment obviously does not eliminate Conseco's financial challenges. The future direction of the ratings is in doubt because of the uncertainty surrounding the timing of the sale of Conseco Finance and the amount and use of proceeds. Ultimately, Conseco's ratings will depend on whether management can swiftly resolve its immediate challenges and maintain a balance between the interests of creditors and shareholders, alike. The following existing ratings for Conseco and its affiliates were downgraded and placed under review -- direction uncertain: Conseco, Inc. -- senior debt rating to Ba3 from Ba1; prospective senior debt shelf rating to (P) Ba3 from (P) Ba1; senior subordinated debt shelf rating to (P) B1 from (P) Ba2; junior subordinated debt shelf rating to (P) B3 from (P) Ba3; subordinated deferrable debenture rating to B1 from Ba2; junior subordinated deferrable debenture rating to B3 from Ba3; preferred stock rating to "b3" from "ba3"; prospective preferred stock shelf rating to (P) "b3" from (P) "ba3"; and prospective noncumulative preferred stock shelf rating to (P) "caa" from (P)"ba3"; Conseco Financing Trusts I, II, III, IV, V, VI, and VII -- preferred stock ratings to "b3" from "ba3"; Conseco Financing Trusts IV,V,VI, VII, VIII, IX and X -- prospective preferred stock shelf ratings to (P) "b3" from (P) "ba3". Conseco Annuity Assurance Company -- insurance financial strength rating to Baa3 from Baa1; Bankers Life and Casualty Company -- insurance financial strength rating to Baa2 from Baa1; Conseco Variable Insurance Company -- insurance financial strength rating to Baa3 from Baa1; Conseco Senior Health Insurance Company -- insurance financial strength rating to Baa3 from Baa1; Conseco Health Insurance Company -- insurance financial strength rating to Baa3 from Baa1; Conseco Direct Life Insurance Company -- insurance financial strength rating to Baa3 from Baa1; Conseco Life Insurance Company -- insurance financial strength rating to Baa3 from Baa1; Washington National Insurance Company -- insurance financial strength rating to Baa3 from Baa1. The followings ratings of Conseco Finance were downgraded and placed under review -- direction uncertain: Conseco Finance Corp. -- senior debt rating to Ba3 from Ba1; prospective senior debt shelf rating to (P) Ba3 from (P) Ba1; senior subordinated debt rating to B1 from Ba2; prospective senior subordinated debt shelf rating to (P) B1 from (P) Ba2; prospective cumulative preferred stock shelf rating to (P) "b3" from (P) "ba3"; prospective noncumulative preferred stock shelf rating to (P) "caa" from (P) "b1"; the company's short-term debt rating for commercial paper was confirmed at Not Prime. GT Capital Trusts I, II, III, and IV -- preferred shelf ratings to (P) "b3" from (P) "ba3" Conseco [NYSE: CNC] is a specialized financial services holding company which, through its subsidiaries, operates in two major lines of business, insurance and fee based operations through its life and health insurance companies, and finance operations primarily through Conseco Finance. As of March 31, 2000, the company reported consolidated GAAP assets of $55 billion and shareholders' equity of $5.4 billion. Conseco is headquartered in Carmel, Indiana, USA. visit our website at www.moodys.com/insurance mr. P$nk