On Aug. 14, 2003, Standard&Poor's Ratings Services lowered its counterparty credit and senior debt ratings on Unitrin Inc. to 'BBB+' from 'A-'. The outlook is stable. At the same time, Standard&Poor's affirmed its counterparty credit and financial strength ratings on Unitrin's insurance operating subsidiaries (see list). The ratings on Unitrin Inc., the holding company, were lowered because of a decline in operating company capital adequacy related to losses in the group's property/casualty insurance businesses as well as growth through sales and acquisitions. Unitrin's operating company ratings are viewed as having appropriate capital for the rating versus a historical position with substantial excess capital. As a result, Unitrin no longer has the excess liquidity that had justified
