S&P changes Arch Capital view

S&P said it revised its outlook to stable from negative on Arch Capital Group Ltd. and its subsidiaries.

At the same time, the agency affirmed its A- long-term issuer credit and senior debt ratings on the holding company, and its A+ issuer credit ratings on the company's core operating subsidiaries.

In addition, S&P affirmed its A issuer credit ratings on Arch's highly strategic mortgage re/insurance operating subsidiaries.

The agency said the revision reflects a view that Arch has successfully integrated its $3.4 billion acquisition of United Guaranty Corp. from American International Group Inc., which closed year-end 2016.

“At the time of the announced deal, our concerns were primarily related to Arch's ability to absorb this transformational acquisition and successfully integrate the material mortgage re/insurance exposure within its risk management framework, while maintaining supportive capital adequacy,” S&P said in a news release.

“In our view, Arch has addressed most of our concerns during the past 18 months.”

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