S&P ups AmWINS

Standard & Poor's said that it raised the counterparty credit rating on AmWINS Group Inc. to B from B- and raised AmWINS' three first-lien senior secured note issues to B from B- and its second-lien senior subordinated note issue to CCC+ from CCC.

The recovery ratings on first-lien debt remain 3, reflecting a 50%-70% recovery in the event of a default, and the recovery rating on second-lien debt remains 6, reflecting 0%-10% recovery.

The rating actions are in response to the material improvement the company has demonstrated regarding its financial profile due to continued favorable performance trends in 2010, the agency said.

The ratings reflect the company's limited financial flexibility, resulting from its highly leveraged capital structure, as well as earnings volatility because of its susceptibility to underwriting, pricing and economic cycles, the agency said.

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