On June 28, 2002, Standard&Poor's assigned its 'A-' senior debt rating to Unitrin Inc.'s $300 million 5.75% senior notes, which are due in 2007. The proceeds from the notes are expected to be used to pay down outstanding short-term debt, as well as for general corporate purposes. The issue will increase financial leverage to 14% from 12%. The rating is based on the company's diversified sources of earnings, extremely strong capitalization in its operating units, conservative debt leverage, and strong current and prospective levels of fixed-charge coverage. Somewhat offsetting these strengths is the significant challenge in restoring the company's property/casualty insurance operations to profitability. Including this issuance, Unitrin's financial leverage (debt to total capital) is expected to remain
