S&P affirms Penn Treaty

Standard & Poor's said it affirmed its B- counterparty credit and financial strength ratings on long-term care insurer Penn Treaty Network America Insurance Co. (PTNA).

At the same time, the agency said it affirmed its CCC- counterparty credit rating on PTNA's parent, Penn Treaty American Corp. (PTAC).

The outlook remains positive.

The ratings reflect the company's below-average business profile, limited but improving new business volume, adequate capitalization, below-average but improving earnings performance and parent company liquidity concerns, S&P said.

The positive outlook is based on PTNA's sustained improvement in its claims adjudication, underwriting and expense management practices, as demonstrated by a decline in the loss ratio to 72.7% in 2004 from 77.0% in 2003, the agency said.

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