Iron Horse Insurance And Traders Insurance Outlook Revised To Negative After Similar Action On Parent; Ratings Affirmed

  • We view captive insurers Iron Horse and Traders as highly strategic subsidiaries of Chevron Corp.
  • We recently revised the outlook on Chevron Corp. to negative from stable because of weaker-than-expected financial performance.
  • As a result, we are revising our outlook on Iron Horse and Traders to negative from stable.
  • We are affirming our 'AA-' long-term issuer credit and financial strength ratings on Iron Horse and Traders.
NEW YORK (S&P Global Ratings) March 24, 2020--, S&P Global Ratings said today 
it revised its outlook on Iron Horse Insurance Co. and Traders Insurance Ltd. 
to negative from stable following the rating action taken on parent Chevron 
Corp. We affirmed our 'AA-' long-term issuer credit and financial strength 
ratings on Iron Horse Insurance Co. and Traders Insurance Ltd.

The negative outlook on Iron Horse Insurance Co. and Traders Insurance Ltd. 
reflects S&P Global Ratings' expectation that projected cash flow and leverage 
metrics for parent Chevron Corp. will fall below expectations for the rating 
in 2020 but expected to recover along with oil prices in 2021. 

Our financial strength ratings on Iron Horse and Traders are based on their 
highly strategically important status under our group rating methodology. As a 
result, the rating on each subsidiary is one notch below that on the ultimate 
parent company, Chevron Corp. When we take a rating action on Chevron Corp., 
we take subsequent rating actions on its highly strategically important 
subsidiaries.  

The negative outlook on Iron Horse and Traders reflects the negative outlook 
on the ultimate parent, Chevron Corp. We believe both captives will continue 
to qualify as highly strategic subsidiaries under our rating criteria. We 
expect any changes in outlook or ratings on the captives to be tied to rating 
actions on Chevron.

We work across the world

From London to San Francisco, to our home base in (Saint Helier) Jersey, we’re looking for extraordinary and creative scientists to help us drive the field forward.

AC Investment Inc. currently does not act as an equities executing broker or route orders containing equities securities. If AC Invest’s business model were to change and it begins routing non-directed orders in NMS securities, it will comply with the disclosure requirement of Rule 606.

77 Massachusetts Avenue Cambridge, MA 02139 617-253-1000 pr@ademcetinkaya.com