S&P rates CNO Financial notes, loans B+

Standard & Poor's said it assigned a B+ rating to CNO Financial Group Inc.'s $250 million senior secured notes due 2020.

S&P also said it assigned a preliminary B+ rating to CNO's $250 million senior secured term loan due in 2016 and to the $400 million senior secured term loan due in 2018.

The agency also assigned a preliminary B+ rating to CNO's proposed $50 million senior secured revolving credit facility.

The proceeds will be used to repay an existing credit facility and for refinancing.

S&P said it believes this will provide CNO with modest improvements in financial flexibility by extending maturities out several years, with the next large obligation due in September 2018.

These actions will provide adequate cushion above covenants on the new senior secured credit agreement, the agency said.

But, capital and earnings are the key covenants that could come under pressure, S&P said.

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