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July 12, 2002 at 08:00 PM
NU Online News Service, July 12, 1:05 p.m. – A.M. Best Company, Oldwick, N.J., has reduced the financial strength ratings of the primary insurance subsidiaries of Conseco Inc., Carmel, Ind., to B++, or Very Good, from A-, or Excellent, and given the ratings a negative outlook.
“Further downgrade is possible should Conseco Inc.’s ongoing financial restructuring initiatives fall behind Best’s expectations for the continuation of secure financial strength ratings on the organization’s insurance subsidiaries,” the rating agency said today in an announcement of the rating moves.
Conseco, an insurance and consumer finance company, has succeed at improving liquidity by arranging reinsurance transactions, asset sells and restructuring of debt, and the capitalization of the insurance subsidiaries appears to be adequate, Best said.
But Best “remains concerned with the challenges that remain for the organization in satisfying its holding company obligations in 2003 and beyond,” the rating agency said. “Potential adverse events related to macro economic conditions or those specific to its core insurance and finance businesses pose an ongoing risk to the execution and timing of management’s restructuring initiatives.”
