S&P rates Horace Mann convertible at BBB+

Standard & Poor's assigned a BBB+ rating to Horace Mann Educator Corp.'s $125 million convertible notes due 2032 and affirmed its counterparty credit rating based on the strong financial position, cash flows and good capital structure of Horace Mann's operating subsidiaries.

S&P also affirmed the A+ ratings on members of the Horace Mann Educators group reflecting a strong franchise in the educators market, extremely strong combined capitalization, excellent results in life and annuity operations and slight improvement in its property/casualty operating performance offset by lower than expected performance in operating earnings mainly because of several reserve strengthening actions taken in the past two years and losses in property insurance and Massachusetts auto.

The outlook for Horace Mann Educators Group is stable.

Horace Mann's pretax operating earnings before interest expense is expected to be more than 5 times debt service, S&P analyst Jose Siberon said.

Although double leverage, excluding unrealized capital gains, will increase with thenew debt, it is expected to stay within the level for the rating, S&P said.

Proceeds from the convertible will be used to retire existing debt and general corporate purpose. Afterward, S&P expects the debt-to-capital ratio of the holding company will be less than 35%.

Moody's rates Horace Mann convertible at Baa2

Moody's assigned a Baa2 rating to Horace Mann Educators Corp.'s proposed convertible note offering and affirmed its senior debt ratings at Baa2. The outlook remains stable.

Key elements that factored into the rating, Moody's noted, include the anticipation that earnings from non-life insurance business will continue to improve. Like many of its competitors, Horace Mann has raised auto and homeowner's rates and it has been actively working to reunderwrite its property business.

Further, Moody's noted it expects Horace Mann to reduce financial leverage ratio following the offering.

Meaningful deviations from these expectations, Moody's said, could cause the rating agency to revisit the outlook or the rating.

S&P rates Anadigics convertible at B

Standard & Poor's assigned its B corporate credit rating to Anadigics Inc. and a B rating to the company's $100 million senior unsecured convertible note due 2006. The outlook is stable.

The ratings reflect a niche position as a supplier of gallium arsenide semiconductors to communications companies, a concentrated customer base and substantial competition. These are offset somewhat by good levels of product acceptance and adequate financial flexibility.

A protracted downturn in the communications industry has led to very low 20% capacity utilization levels at Anadigics' manufacturing plants. Utilization is expected to improve slowly near term, mirroring communications end-market demand, challenging the company's return to profitability and cash flow.

Overall, wireless handset units growth is slowing. In addition, more than 75% of the company's sales are to three customers - Kyocera Wireless Corp, Motorola Inc. and Ericsson.

Anadigics is highly leveraged, with total debt of $100 million as of March, exceeding last-12-month sales of $76 million. Sales in the quarter were $19 million.

Anadigics has not been able to absorb fixed costs and cost-cutting measures have not stemmed operating losses. Anadigics used more than $60 million in cash in 2001 due to operating losses, capital expenditures and acquisitions.

Anadigics does not expect to make material new investments in manufacturing facilities near term. Therefore, cash balances of $193 million as of March 2002 are adequate to fund operating losses.

The company's good level of product acceptance and liquidity supports the rating. Still, the timing for Anadigics' return to sustained levels of profitability and positive cash flow remains uncertain, limiting the ratings.

S&P rates new Ikon convertible BB+

Standard & Poor's assigned a BB+ rating to Ikon Office Systems' new $250 million convertible subordinated notes due 2007 to be issued through IOS Capital LLC.

S&P rates new Vinci convertible BBB+

Standard & Poor's assigned a BBB+ rating to Vinci SA's new issue of €500.25 million 2% OCEANE convertible bonds due 2018.

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