S&P rates Conseco notes BB-, view up to positive

Standard & Poor's said it revised its outlook on Conseco Inc.'s core operating companies to positive from stable.

The outlook on Conseco Inc. and Conseco senior Health Insurance Co., which is a non-strategic member of the group, remains stable.

At the same time, S&P said it assigned its BB- rating to Conseco Inc.'s upcoming $300 million convertible senior notes issue.

Proceeds from the new senior debt issue will be used to pay down the existing $767 million bank credit facility, S&P said.

In addition, S&P said it affirmed its BB+ counterparty credit and financial strength ratings on Conseco Inc.'s core operating companies, its CCC counterparty credit and financial strength ratings on CSH and its BB- counterparty credit rating on Conseco Inc.

The agency said Conseco's competitive position is marginal with a capital adequacy ratio of only 4% at year-end 2004, but it has a good level of capitalization.

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