NU Online News Service, Dec. 29, 2003, 1:44 p.m. EST – Conseco Inc., Carmel, Ind., has received a preliminary B- rating from Standard & Poor’s Ratings Services, New York, on senior unsecured debt it hopes to issue through a $3 billion universal shelf registration.[@@]
S&P assigned a CCC rating to Conseco’s subordinated debt and a CCC- rating to its preferred stock.
Conseco emerged from Chapter 11 bankruptcy reorganization proceedings in September. The company sold its consumer finance operations and now is focusing on selling insurance.
Conseco filed the shelf registration with the U.S. Securities and Exchange Commission Dec. 5. Once the registration takes effect, Conseco will have the authority to issue new securities but no obligation to do so. If Conseco does issue securities, it will use the proceeds to beef up capital levels at the parent company.
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“If a recapitalization does occur, Standard & Poor’s will analyze the resulting structure to determine if any rating actions are warranted,” S&P says in a comment on the new Conseco debt ratings.