S&P Global Ratings on July 13 revised its outlook onNorway-based KommunalLandspensjonskasse Gjensidig Forsikringsselskap to stable fromnegative.

At the same time, the agency affirmed KLP's long-term insurerfinancial strength and counterparty credit ratings at A-.

The outlook revision reflects the agency's belief that KLP'sability to call in capital from its owners has strengthened. The rating agencyalso noted that KLP is incurring less credit risk, due to its exposures toNorwegian municipalities through loans and bonds. The revision also reflectsthe agency's view of KLP's sustained capital adequacy owing tohigher-than-expected earnings in 2015.

The stable outlook reflects the agency's expectation thatthe insurer's growth will not hamper its capital adequacy over the next twoyears and that its competitive position will be sustained.

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.