S&P upgrades Iron Horse

S&P said it raised the long-term issuer and insurer financial strength ratings on Iron Horse Insurance Co. and Traders Insurance Ltd. to AA- from A+.

The outlook is stable.

On Dec. 17, S&P said it raised the ratings on the Chevron group to AA, reflecting significantly improved financial performance, strong cash-flow generation and debt repayment.

The ratings on Iron Horse and Traders reflect a view that the companies are highly strategic subsidiaries to parent Chevron, S&P said.

The ratings are one-notch lower than the group credit profile of the parent, the agency explained.

The captives are considered an integral part of the group's financial and risk-management structure, playing significant roles in the group's global risk-retention strategy, S&P said.

Partly offsetting these strengths are the company's relatively volatile operating performance and weak capital adequacy, the agency said.

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