Fitch: Markel outlook stable

Fitch Ratings said it revised Markel Corp.'s outlook to stable from positive and affirmed its issuer default rating at BBB+ and its $250 million 6.8% senior notes due 2013, $200 million 7.35% senior notes due 2034 and $150 million 7½% senior notes due 2046 at BBB.

The change in outlook reflects the increased pressures Markel faces as a result of the extraordinarily challenging credit market environment coupled with a decline in underwriting profitability, the agency said. Fitch noted that while Markel has no direct exposure to sub-prime residential mortgage-backed securities, the company maintains an above-average exposure to the equity markets.

The ratings also consider Markel's significant reduction in its reinsurance recoverable exposure to $1.2 billion at June 30 through collections and commutations, and the ratings benefit from conservative reserving and accounting practices across the organization, the agency said.

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