S&P: Forethought notes at BBB-

Standard & Poor's said that it assigned a BBB- senior debt rating to Forethought Financial Group Inc.'s $150 million of 8.625% senior notes due 2021 and affirmed Forethought's BBB- counterparty credit rating and A- counterparty credit and financial strength ratings on subsidiary Forethought Life Insurance Co.

The outlooks are stable.

The proceeds will be used to retire its payment-in-kind promissory note, including accrued interest, held by Hillenbrand Inc.

The ratings consider the expectation that financial leverage will remain relatively unchanged following the issuance of the notes as well as the company's stable cash flow, the agency said.

The stable outlook reflects the expectation that Forethought will maintain its leading market position in the preneed insurance sector and achieve profitable growth in its annuity and final expense life insurance business segments, the agency added.

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