S&P Gives Max Capital Positive Outlook

S&P said the outlook revision is based on its expectation that the Bermuda-based reinsurer will be ready for an upgrade in the next 18 to 24 months. Max Capital and its subsidiary currently have a counterparty credit rating of "BBB-," one notch above junk status.

"Max Capital enjoys a good competitive position as a diversified insurance and reinsurance company, adequate enterprise risk management, strong operating performance and strong capitalization," S&P said.

Certain issues that once limited the company's ratings, including a concentrated account profile, regulatory risk and an outsourced life reinsurance claims business, have improved or been resolved, S&P said.

Max Capital shares rose 2 cents to close at $26.57. Shares continued to rise in aftermarket trading, adding 12 cents to reach $26.69.