Fitch: Kemper debentures BB

Fitch Ratings said it expects to assign a BB rating to Kemper Corp.'s $150 million issuance of cumulative subordinated debentures maturing in 2054.

Kemper intends to use the net proceeds from the sale of the debentures for working capital and other general corporate purposes, which may include retirement of a portion of its existing debt on or before its scheduled maturity date, the agency noted.

Given Fitch's expectation of lower recoveries of subordinated debt and its loss absorption features, the rating is notched down from Kemper's senior debt by two notches.

The agency said that financial leverage, excluding unrealized investment gains/losses on fixed-income securities, is expected to temporarily increase to 28.3% from 24% at Dec. 31.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.