S&P rates CNO Financial notes BB+

S&P said it assigned a BB+ debt rating to CNO Financial Group Inc.'s proposed senior unsecured notes issuance.

These notes will be unsecured and unsubordinated obligations and will rank pari passu with existing senior indebtedness, S&P said.

The agency said it expects the company to use the proceeds from this issuance to repay its revolver balance of about $100 million and refinance its 2020 senior unsecured maturities, with any balance to be used for general corporate purposes, resulting in limited impact on the company's financial leverage.

In the third quarter of 2018, CNO completed a long-term care reinsurance transaction with Wilton Reassurance Co. whereby it ceded its legacy comprehensive and nursing home long-term care policies through 100% indemnity co-insurance, S&P said.

This transaction significantly reduced the company's exposure to long-term care insurance risk, the agency explained.

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