S&P Global Ratings has affirmed its long-termcounterparty credit rating on CNOFinancial Group Inc. at BB+.
In addition, the rating agency affirmed the BBB+counterparty credit and financial strength ratings on the company's operatingunits Bankers Life & CasualtyCo., Colonial PennLife Insurance Co., BankersConseco Life Insurance Co. and Washington National Insurance Co.
S&P removed the ratings from CreditWatch Negative, wherethey were placed Aug.1. The outlook is negative.
The rating agency said the ratings action takes into accountthe impact of the company's plan to recapture its closed-block long-term care insurancebusiness from Beechwood Re Ltd. on its capital adequacy and earningscapabilities.
S&P's ratings on the company and its operating unitsrepresent the agency's view of CNO's strong business risk profile and loweradequate financial risk profile.
The negative outlook reflects the possibility that S&Pcould downgrade the ratings in the next 18 to 24 months, based on theexpectation that the company will see additional pressure on capital andearnings due to its recapture plan, which will impact its capitalizationmetrics as measured by S&P's risk-based capital model.
S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.