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Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: donjuan_demarco who wrote (2243)	8/8/2000 2:59:09 PM
From: donjuan_demarco	Read Replies (1) \| Respond to of 4155

When it rains it pours --- DJ Conseco Finance/S&P -2: Lacks `Funding Flexibility' 08 Aug 14:49 NEW YORK (Dow Jones)--Standard & Poor's said it revised the CreditWatch status of the ratings on Conseco Finance Corp. to negative from developing, where they where placed on March 31. S&P said it believes Conseco Finance's creditworthiness "is severely limited by a lack of funding flexibility and aggressive leverage. "It is increasingly likely that Conseco Finance will not be sold to a higher-rated entity in the foreseeable future," S&P said. The ratings agency added that if the financial condition of its parent, Conseco Inc. (Conseco), continues to deteriorate, "what financial flexibility Conseco Finance does enjoy could be utilized to support the parent company as it attempts to meet its own debt obligations." The ratings on Conseco Finance will remain on CreditWatch Negative until the CreditWatch status of the parent company is resolved, S&P said. Conseco Inc.'s ratings, which were placed on CreditWatch with negative implications on April 7, "reflect the uncertainty surrounding Conseco Inc.'s (Conseco) short-term liquidity and its ability to successfully renegotiate or pay down the $766 million bank line maturing on Sept. 22, 2000," S&P said. The current double-B-minus senior debt rating on Conseco is unaffected by the decision by Conseco's new CEO, Gary Wendt, to retain the manufactured housing and home equity operations of Conseco Finance, and continues to reflect the "longer-term uncertainty surrounding Conseco's ongoing earnings strength and ultimate capital structure. "Although Standard & Poor's believes Conseco will be able to renegotiate the bank line maturing in September, enough uncertainty remains to keep the ratings on CreditWatch, where they will likely remain at least until the Sept. 22 maturity is resolved. "If the company is unsuccessful in negotiating an extension or replacement of the current bank line, it will be dependent on a successful liquidation of its investment in Tritel to provide sufficient funds to pay off the maturing line," S&P said. Conseco is in the process of liquidating several other nonstrategic holding company assets and Conseco Finance portfolios, S&P said. "Although Standard & Poor's believes these efforts will ultimately provide additional liquidity to the holding company, proceeds from these sales are not expected to be realized before Sept. 22," S&P said. S&P said it believes Conseco's current capital structure and ongoing operating earnings are supportive of the current debt ratings, and reflect it's expectation that the bank line maturing in September will be successfully renegotiated. OUTSTANDING RATINGS REMAINING ON CREDITWATCH NEGATIVE - Conseco Inc. Counterparty credit rating BB- Senior debt BB- Preferred stock B- Commercial paper B - Bankers Life & Casualty Co. - Conseco Annuity Assurance Co. - Conseco Direct Life Insurance Co. - Conseco Health Insurance Co. - Conseco Life Insurance Co. - Conseco Life Insurance Co. of NY - Conseco Medical Insurance Co. - Conseco Senior Health Insurance Co. - Conseco Variable Insurance Co. - Manhattan National Life Insurance Co. - Pioneer Life Insurance Co. Counterparty credit rating BBB Financial strength rating BBB OUTSTANDING RATINGS; CREDITWATCH REVISED TO NEGATIVE FROM DEVELOPING - Conseco Finance Corp. Counterparty credit rating B- Short-term counterparty credit rating B Senior unsecured debt B- Subordinated debt CCC (END) DOW JONES NEWS 08-08-00 02:49 PM