S&P affirms ProAssurance

Standard & Poor's said it affirmed the BBB- counterparty credit rating on ProAssurance Corp.

The outlook remains positive.

The affirmation follows news that the company has signed a definitive agreement to acquire American Physicians Service Group Inc. for about $233 million, S&P said.

The all-cash transaction is expected to close by the end of 2010, subject to approvals, the agency said.

The ratings reflect a view that the acquisition will not change expectations for the company, S&P said.

The acquisition will moderately enhance ProAssurance's market position, diversify its revenue stream geographically and provide it with a meaningful footprint in Texas and incremental business in Oklahoma and Arkansas in the long term, the agency said.

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