Conseco Inc.’s Note Issued ‘BB-‘

S&P assigned its “BB-” senior unsecured debt rating to Conseco Inc’s $400 million in senior notes, which are due in 2008. The outlook is stable.

Operating earnings have started to improve after the significant restructuring in 2000 that had led to an operating loss. For the first quarter of 2001, operating earnings before goodwill and taxes were $266.8 million, compared with $221.1 million for the first quarter of 2000, reflecting an improvement in Conseco’s insurance and finance sectors.

S&P believes that Conseco’s earnings will continue to improve. Its insurance operations are expected to continue to produce pretax operating earnings of at least $200 million per quarter, maintaining the pace established in the first quarter of 2001. Conseco Finance Corp., one of Conseco’s subsidiaries, is expected to maintain controlled growth, which will continue to produce positive cash flow, according to S&P.