Rating Agencies Hammer Kemper After News

Kemper's announcement yesterday that it lost $312 million in 2002 and was selling its core business to focus on claims management services was not well received by any of the financial rating services. Fitch, Standard & Poor's and Moody's all lowered the company's ratings yesterday following Kemper's news. Fitch downgraded the insurer financial strength ratings of three primary insurance underwriters of the Kemper Insurance Companies (KIC) to "CC" from "B+." Fitch also downgraded the $700 million of surplus notes issued by group member Lumbermens Mutual Casualty Company (Lumbermens) to "C" fr...