AM Best Assigns Issue Credit Rating to CNO Financial Group, Inc.’s Subordinated Debentures
AM Best has assigned a Long-Term Issue Credit Rating of bb+ to the $150 million 5.125% subordinated debentures due Nov. 25, 2060, issued by CNO Financial Group, Inc. (Carmel, IN).
AM Best has assigned a Long-Term Issue Credit Rating of “bb+” to the $150 million 5.125% subordinated debentures due Nov. 25, 2060, issued by CNO Financial Group, Inc. (Carmel, IN). The outlook assigned to this Credit Rating (rating) is stable.
This issuance aims to provide the company with additional capital diversification and flexibility, as this is its first subordinated debenture offering. The company intends to use the net proceeds for general corporate use. As a result of the new issuance, AM Best expects the company’s financial leverage to increase but remain within tolerable levels. While pro-forma year-end 2019 GAAP coverage is low based, it is expected to increase for 2020, as the first nine months of 2020 of earnings have been more favorable. The company provides an estimated combined risk-based capital ratio of 428% as of third-quarter 2020, an improvement from the end of 2019.
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