S&P: Allstate outlook negative

Standard & Poor's said it lowered the counterparty credit rating on Allstate Corp. to A-/A-2 from A+/A-1.

The outlook is negative.

"These rating actions reflect the significant deterioration in the operating companies' capital adequacy to the high end of the adequate range from strong," S&P analyst Neil Stein said in a statement.

Ratings reflect the company's strong and diversified national market presence in the United States, strong operating performance, and liquidity stemming from strong operating cash flows and increased cash and short-term holdings, the agency said.

Ratings incorporate the expectation that Allstate will continue to sustain its competitive position while reducing its catastrophe exposure, S&P said.

The agency said it is concerned that these efforts have not only hampered growth and reduced cross-selling opportunities but also threaten Allstate's reputation with customers and regulators, the agency said.

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