S&P assigns Conseco loan BB-

Standard & Poor's said it assigned its BB- senior debt rating to Conseco Inc.'s $675 million senior secured term loan due 2013.

The agency said that the proceeds will be used to refinance the $478 million outstanding on an existing facility and provide capital to Conseco's insurance subsidiaries.

S&P added it affirmed its BB+ financial strength and counterparty credit ratings on Conseco's core insurance subsidiaries.

The assigned BB- rating primarily reflects the underlying financial strength of Conseco's insurance operations, which S&P said it still considers to be speculative grade.

With the incremental new debt, debt/capital will be about 17% and debt plus preferred securities/capital will be about 29%, the agency noted.

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