AM Best has assigned a Long-Term Issue Credit Rating (Long-Term
IR) of “bbb-” to the forthcoming $500 million 5.25% senior unsecured
notes due May 30, 2029, issued by CNO Financial Group, Inc. (CNO
Financial) (headquartered in Carmel, IN) [NYSE: CNO]. The outlook
assigned to the Credit Rating (rating) is stable. CNO Financial’s
existing Long-Term Issuer Credit Rating and Long-Term IRs are unchanged.
The proceeds of the issuance will be used to redeem CNO Financial’s
outstanding $325 million 4.5% senior unsecured notes due in 2020, repay
amounts outstanding under the revolving credit facility including fees
and expenses related to this offering. AM Best anticipates that CNO
Financial’s adjusted financial leverage ratio will increase to
approximately 25.7% as a net result of the recapitalization plan.
Despite the modest increase in leverage, AM Best notes that the
company’s financial leverage and interest coverage ratios remain well
within AM Best’s guidelines for CNO Financial’s current ratings.
This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
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for more information.
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