S&P ups Pacific Century

Standard & Poor's said it raised its insurer financial strength and counterparty credit ratings on Pacific Century Insurance Co. Ltd. to BBB+ from BBB-.

At the same time, the rating on PCI Capital Ltd.'s $100 million 10-year unsecured 5.875% notes due 2014 guaranteed by PCI was raised to BBB from BB+, S&P said, adding that it removed the ratings from CreditWatch, where they were placed with positive implications on March 1 after Fortis Insurance International NV (Fortis insurance, whose core subsidiaries are rated AA-/stable) announced its intention to acquire Pacific Century's immediate holding company, Pacific Century Insurance Holdings Ltd.

The upgrade reflects implicit support from the financially strong Fortis insurance group, as well as Pacific Century's improved standalone credit profile in recent years, which includes expanded business lines and enhanced operating performance, the agency added.

S&P said that the ratings continue to reflect the company's strong capitalization.

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