Fitch: Loews outlook positive

Fitch Ratings said it affirmed Loews Corp.'s issuer default rating and senior unsecured notes at A and revised the outlook to positive from stable.

The positive outlook reflects both the improved credit profiles at Loews and its operating subsidiaries since the height of the credit crisis, the agency said. Key among these improvements include increased cash balances at the parent company, continued strong cash receipts in the form of dividends from Loews' operating subsidiaries and the reduced probability of cash injections into the company's operating subsidiaries.

The rating continues to reflect Loews' historically stable credit profile and robust balance sheet including significant cash balances and low debt levels at the parent level, combined with the continued upstreaming of sizable dividends by Loews' subsidiaries, Fitch said.

An offsetting factor is the structurally subordinated position of Loews' bondholders to the cash flows of the company's subsidiaries, the agency said.

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