S&P Rating Services Upgrades LMGI Outlook from Stable to Positive

October 05 00:00 2011

NEW YORK, October 5 (RainbowNewsLine.com) – Analysts at S&P Rating Services have upgraded the outlook of Liberty Mutual Group from Stable to Positive.

Liberty Mutual Group Inc., members of Liberty Mutual Intercompany pool, the peerless intercompany pool, and other insurance affiliates were jointly upgraded from stable to Positive outlook. The upgrade by S&P is based on improvements seen in the company’s 2010 results and further improvements though the first 6 months of 2011.  Its peers matched the performance of LMGI during the first half of this year.

LMGI was upgraded in all spheres as Liberty Mutual Insurance Co. received ‘BBB’; ‘A2’ ratings were confirmed on short-term counterparty credit and commercial paper rating. Moreover, long-term counterparty credit and senior unsecured debt were rated ‘BBB’, ‘BB’ to junior subordinate debt and ‘A-‘was given to long term counterparty credit and insurer financial strength of Liberty.

Analyst Birgitte Arendal of Standard & Poor’s credit said:  “The outlook revision reflects our view that LMGI’s results improved in 2010, and that the first six months of 2011 performance compares favorably with peers’ and the P/C industries,”

The positive outlook represents S&P’s confidence that if Liberty maintains its operating performance, management’s efforts to improve workers compensation and earnings for next two years , it would revise the rating again.