PMACA Pma Capital Corp. (MM)

A.M. Best Co. has placed the financial strength rating (FSR) of B (Fair) and issuer credit rating (ICR) of �bb� of PMA Capital Insurance Company (PMACIC) (Philadelphia, PA) under review with negative implications following the announcement that its parent, PMA Capital Corporation (PMA Capital) (Blue Bell, PA) (NASDAQ: PMACA), has entered into a letter of intent with a third party to divest its run-off operations. The ICR of �bb� of PMA Capital and the FSR of A- (Excellent) and ICRs of �a-� of PMA Insurance Group (Blue Bell, PA) and its members are unchanged. Additionally, the debt and indicative ratings of PMA Capital and PMA Capital Trust I and II are unchanged. The outlook for these ratings is stable. The placing of PMACIC�s ratings under review reflects the planned sale to a third party of its discontinued, run-off operations, which consist of former reinsurance and excess and surplus lines. While the sale includes PMA Re Management Company, including the key management personnel handling the run off, the under review status reflects A.M. Best�s concern with the lack of future commitment from PMA Capital to support run-off operations, uncertainty with the level of commitment of the new parent to sustain operations and with the execution risk associated with managing the run-off plan. For Best�s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.