S&P lowers Iron Horse

Standard & Poor’s said it lowered the financial strength and long-term counterparty credit ratings on Iron Horse Insurance Co. to A+ from AA-.

The outlook is stable.

The downgrades reflect similar downgrades on Chevron Corp.’s long-term corporate credit rating to AA- from AA, reflecting lower oil and gas prices and refining margins expected during the next two years.

The outlook is stable.

The ratings and outlook on Iron Horse reflect a view that the company is highly strategic to Chevron under group methodology criteria, S&P said.

The rating on a highly strategic subsidiary is one notch below the group credit profile. Iron Horse as an integral part of the group’s financial- and risk-management structure, the agency said, as it plays a significant role in the group’s risk-retention strategy.

Partly offsetting these strengths are its relatively weak operating performance and capital adequacy, S&P said.

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