Moody's affirms Commerce Group

Moody's Investors Service said it affirmed the A2 insurance financial strength rating of Commerce Insurance Co., and the Baa2 senior debt rating of Commerce Group Inc. following news of the planned acquisition of 100% of Commerce by the Spanish Mapfre Insurance Group.

The outlook also has been changed to positive from stable reflecting the benefits likely to emerge for Commerce from the planned transaction.

The affirmation reflects the fact that, given Mapfre's current limited market presence in the United States, Commerce will continue to operate as a stand-alone U.S. operation with limited opportunity for revenue synergies or cost savings, Moody's said.

However, the positive outlook reflects the benefits that Commerce could realize over time from being part of the larger and financially stronger global Mapfre group, the agency added.

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