S&P cuts Progressive

Standard & Poor's said it lowered its counterparty credit and financial strength ratings on Progressive Corp.'s property/casualty insurance operating companies to AA from AA+. Its A+ counterparty credit rating was affirmed.

The outlook was revised to stable from negative.

The downgrade reflects a decrease in the operating companies' capital adequacy to the strong level from very strong, S&P said.

The downgrade also reflects the group's vulnerability to earnings volatility from reasonable exposure to equities, the agency said, as well as other investments that have experienced credit impairments.

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