S&P lifts Ohio Casualty to investment grade

Standard & Poor's said it raised its counterparty credit and senior debt ratings on Ohio Casualty Corp. to BBB- from BB+.

At the same time, S&P said it raised its counterparty credit and financial strength ratings on the members of the Ohio Casualty Insurance Co. Intercompany Pool to A- from BBB+.

The outlook is stable.

S&P said that these rating actions are based on the group's continued strong operating performance, improved expense structure, very strong capitalization, stabilized loss reserve levels, strong interest coverage, low financial leverage, strong liquidity and cash flow and the expectation that these favorable trends will continue.

Offsetting these positive factors is an expense ratio that remains moderately higher than its industry peers, continued underwriting challenges in segments of its core commercial lines division and negligible top-line growth, the agency added.

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