S&P’s Places Kemper ‘BB+’ Ratings on CreditWatch Neg

Standard & Poor’s has placed its ‘BB+’ counterparty credit and financial strength ratings on the members of the Kemper Insurance Cos. Intercompany Pool on CreditWatch with negative implications because Kemper will reportedly be significantly challenged to meet Standard & Poor’s expectations in terms of earnings, capital adequacy, and future interest payments on the surplus notes.

Standard & Poor’s also said that it placed on CreditWatch negative its surplus notes rating on Lumbermens Mutual Casualty Co. and lowered it to ‘CCC’ from ‘B+’.

“Standard & Poor’s expects to resolve the CreditWatch status of the ratings following its evaluation of year-end 2002 statements and receipt of additional information,” Standard & Poor’s credit analyst Frederic Sklow commented.