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

NEW YORK--(BUSINESS WIRE)--Feb. 18, 2003--Standard & Poor's Ratings Services said today that it 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 be significantly challenged to meet Standard & Poor's expectations in terms of earnings, capital adequacy, and future interest payments on the surplus notes.

Published on February 18, 2003

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," noted Standard & Poor's credit analyst Frederic A. Sklow.

Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com under Fixed Income in the left navigation bar, select Credit Ratings Actions.

Copyright 2003, Standard & Poor's Ratings Services