S&P lifts Public Service outlook to positive

Standard & Poor's said it revised its outlook on Public Service Mutual Insurance Co. and its wholly owned affiliates Paramount Insurance Co. (NY) and Western Select Insurance Co. - collectively, Magna Carta - to positive from stable.

At the same time, S&P said it affirmed its BBB- counterparty credit and financial strength ratings on these companies.

The agency said that the outlook revision is based on the company's consistently exceeding its prior expectations, significant improvement in operating performance and a sizable reduction of asbestos and environmental reserves in its balance sheet due to two large commutations.

The ratings reflect the group's good and sustainable competitive position, improved operating performance and very strong capital adequacy, S&P said, noting that slightly mitigating these positive factors are the company's potential future volatility associated with its asbestos reserves, albeit significantly diminished from its earlier levels and its limited financial flexibility.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.