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Fitch puts on "positive" watch PMA Capital's ratings on planned acquisition.

BANKING AND CREDIT NEWS-11 June 2010-Fitch puts on "positive" watch PMA Capital's ratings on planned acquisition(C)1994-2010 M2 COMMUNICATIONS

11 June 2010 - Fitch placed Thursday on "positive" watch the BBB- issuer default rating and the BB+ senior debt rating of US insurer PMA Capital Corp (NASDAQ:PMACA).

The agency also put on "positive" watch the BBB+ insurer financial strength rating (ISR) of its three active primary insurance subsidiaries, collectively known as PMA Insurance Group (PMAIG).

The rating action was prompted by the company's announcement that it has entered into a takeover agreement with local sector player Old Republic International Corp (NYSE:ORI), Fitch explained.

ORI unveiled plans to acquire PMACC in an all-stock transaction, estimated at some USD230m (EUR189.7m), which is seen to be finalised in the third quarter of 2010.

Fitch will resolve the rating watch status upon the transaction's completion.

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Publication:M2 Banking & Credit News (BCN)
Date:Jun 11, 2010
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