On Sept. 3, 2008, Standard&Poor's Ratings Services lowered its counterparty credit rating on Unitrin Inc. to 'BBB' from 'BBB+' and placed the rating on CreditWatch with negative implications. At the same time, Standard&Poor's placed its 'A' counterparty credit and financial strength ratings on Unitrin's property/casualty (P/C) subsidiaries, its 'A+' counterparty credit and financial strength ratings on Unitrin's life subsidiaries, and its 'A' counterparty credit and financial strength ratings on Reserve National Insurance Co. on CreditWatch with negative implications (see ratings list). The downgrade is the result of an adjustment from a nonstandard gapping differential to a standard gapping differential. This action reflects the reduced income stream at the holding company level resulting from deterioration in underwriting
