Fitch Cuts Insurer Conseco's Ratings

Fitch Ratings cut its noninvestment-grade ratings Wednesday on Conseco Inc. and expressed concern about the insurer's financial health.

The credit rating firm lowered its issuer default rating for Conseco to "BB" from "BB+." Both ratings are considered below investment grade.

Fitch also cut its rating on $1.2 billion worth of Conseco debt and lowered its insurer financial strength ratings on the Carmel, Ind.-based company and its subsidiaries.

"The downgrades reflect Fitch's ongoing concerns over the company's financial results for 2007 and uncertainty as to its performance going forward," the rating firm said.

In August, Fitch lowered its outlook to Negative from Stable because of concerns over Conseco's long-term care business and an anticipated long-term recovery effort. Then in October, Conseco reported it swung to a third-quarter loss because of large charges.

All of those factors, Fitch said, have lessened its "confidence that Conseco is on a clear path toward earnings improvement and stable financial results."

Conseco shares rose 4 cents to $12.61 in after-hours trading, after falling 12 cents to close at $12.57 during the regular session.

Source: Associated Press (www.ap.org)

From: International Business Times (www.ibtimes.com)